The business cycle is alive and well, and real variables respond to it more or less as they
always did. Witness the Great Recession. Inflation, in contrast, has gone quiescent. This …

The secular decline in the equilibrium real interest rate observed over the past decades has
materially limited the room for policy-rate reductions in recessions, and has led to a marked …

We address this question using an estimated New Keynesian DSGE model of the Euro Area
with trend inflation, imperfect indexation, and a lower bound on the nominal interest rate. In …

This paper considers average inflation targeting (AIT) policy in a New Keynesian model with
adaptive learning agents. There are stability concerns regarding AIT when agents have …

We study the implications of the Fed's new policy framework of average inflation targeting
(AIT) and its ambiguous communication. The central bank has the incentive to deviate from …

We study the impact of market incompleteness and bounded rationality on the effectiveness
of make-up strategies. Using a heterogeneous-agent New Keynesian model with reflective …

We study alternative monetary policy strategies in the presence of the lower bound on
nominal interest rates and a low equilibrium real rate using an estimated DSGE model for …

Central banks in major industrialized economies were slow to react to the surge in inflation
that began in early 2021. The proximate causes of this surge were the supply chain …

We develop a Canadian behavioral agent-based model (CANVAS) that utilizes Canadian
micro-and macroeconomic data for forecasting and policy analysis. CANVAS represents a …

In the benchmark New Keynesian (NK) model, I introduce the real cost channel to study
government spending multipliers and provide simple Markov chain closed-form solutions …