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 develop a dynamic general equilibrium model in which the policy rate signals the central
bank's view about macroeconomic developments to price setters. The model is estimated …

Abstract The Great Inflation of the 1970s can be understood as the result of equilibrium
indeterminacy in which loose monetary policy engendered excess volatility in …

Empirical studies show that successful disinflations entail a period of output contraction.
Using a medium-scale New Keynesian model, we compare the effects of disinflations of …

In this paper we ask how uncertainty about fiscal policy affects the impact of fiscal policy
changes on the economy when the government tries to counteract a deep recession. The …

We develop and estimate a general equilibrium model to assess the effects and welfare
implications of central bank transparency. Monetary policy can deviate from active inflation …

We develop methods to solve general equilibrium models in which forward‐looking agents
are subject to waves of pessimism, optimism, and uncertainty that turn out to critically affect …

Recently, China has experienced a surge in patenting and become the leading applicant
nation worldwide. The technological substance of this growth, however, has become …

In various speeches, former Fed Chairman Ben Bernanke contrasted the proposal of setting
a higher inflation target by claiming that it could unanchor inflation expectations. A standard …

We develop and estimate a general equilibrium model in which monetary policy can deviate
from active inflation stabilization and agents face uncertainty about the nature of these …