This paper argues for a careful (re) consideration of the expectations formation process and
a more systematic inclusion of real-time expectations through survey data in macroeconomic …

Monetary policy and the private sector behaviour of the US economy are modelled as a time
varying structural vector autoregression, where the sources of time variation are both the …

Recent evidence suggests that consumption rises in response to an increase in government
spending. That finding cannot be easily reconciled with existing optimizing business cycle …

Most macroeconomic models for monetary policy analysis are approximated around a zero
inflation steady state, but most central banks target an inflation rate of about 2 percent. Many …

We investigate the implications of changes in the structure of the US economy for monetary
policy effectiveness. Estimating a vector autoregression over the pre-and post-1980 periods …

This paper examines what we have learned and how we should change our thinking about
monetary policy strategy in the aftermath of the 2007-2009 financial crisis. It starts with a …

We study macroeconomic systems with forward-looking private sector agents and a
monetary authority that is trying to control the economy through the use of a linear policy …

The level of real interest rates actually observed does not necessarily coincide with its
“natural” level. This paper contrasts a number of approaches that have served to elaborate …

It is argued that inflation targeting is best understood as a commitment to a targeting rule
rather than an instrument rule, either a general targeting rule (explicit objectives for …

We lay out a tractable model for the analysis of optimal monetary and fiscal policy in a
currency union. The monetary authority sets a common interest rate for the union, whereas …