A behavioral New Keynesian model
X Gabaix - American Economic Review, 2020 - aeaweb.org
This paper analyzes how bounded rationality affects monetary and fiscal policy via an
empirically relevant enrichment of the New Keynesian model. It models agents' partial …
empirically relevant enrichment of the New Keynesian model. It models agents' partial …
The power of forward guidance revisited
In recent years, central banks have increasingly turned to forward guidance as a central tool
of monetary policy. Standard monetary models imply that far future forward guidance has …
of monetary policy. Standard monetary models imply that far future forward guidance has …
Forward guidance without common knowledge
GM Angeletos, C Lian - American Economic Review, 2018 - aeaweb.org
How does the economy respond to news about future policies or future fundamentals?
Standard practice assumes that agents have common knowledge of such news and face no …
Standard practice assumes that agents have common knowledge of such news and face no …
Macroeconomic fluctuations with HANK & SAM: An analytical approach
Recently developed HANK models, which combine Heterogeneous Agents and New
Keynesian frictions, have had a considerable impact on macroeconomics. However, due to …
Keynesian frictions, have had a considerable impact on macroeconomics. However, due to …
The state of New Keynesian economics: a partial assessment
J Galí - Journal of Economic Perspectives, 2018 - aeaweb.org
In August 2007, when the first signs emerged of what would come to be the most damaging
global financial crisis since the Great Depression, the New Keynesian paradigm was …
global financial crisis since the Great Depression, the New Keynesian paradigm was …
Understanding HANK: Insights from a PRANK
S Acharya, K Dogra - Econometrica, 2020 - Wiley Online Library
Using an analytically tractable heterogeneous agent New Keynesian model, we show that
whether incomplete markets resolve New Keynesian “paradoxes” depends on the cyclicality …
whether incomplete markets resolve New Keynesian “paradoxes” depends on the cyclicality …
Understanding the size of the government spending multiplier: It's in the sign
R Barnichon, D Debortoli… - The Review of Economic …, 2022 - academic.oup.com
This article argues that an important, yet overlooked, determinant of the government
spending multiplier is the direction of the fiscal intervention. Regardless of whether we …
spending multiplier is the direction of the fiscal intervention. Regardless of whether we …
What matters in households' inflation expectations?
Using survey data on French households over the 2004–2018 period, we provide new
evidence on the role of households' inflation expectations for durable spending decisions. A …
evidence on the role of households' inflation expectations for durable spending decisions. A …
Heterogeneous agents in the macroeconomy: reduced-heterogeneity representations
X Ragot - Handbook of Computational Economics, 2018 - Elsevier
This chapter surveys heterogeneous agent models with rational expectations that deliver a
finite number of heterogeneous agents as an equilibrium outcomes. Instead of having a …
finite number of heterogeneous agents as an equilibrium outcomes. Instead of having a …
Determinacy without the Taylor principle
GM Angeletos, C Lian - Journal of Political Economy, 2023 - journals.uchicago.edu
Our understanding of monetary policy is complicated by an indeterminacy problem: the
same path for the nominal interest rate is consistent with multiple equilibrium paths for …
same path for the nominal interest rate is consistent with multiple equilibrium paths for …