The euro area recently experienced a prolonged period of weak economic activity and very
low inflation. This paper reviews models of business cycle stabilization with an eye to …

This paper formalizes and quantifies the secular stagnation hypothesis, defined as a
persistently low or negative natural rate of interest leading to a chronically binding zero …

Traditionally, economic growth and business cycles have been treated independently.
However, the dependence of GDP levels on its history of shocks, what economists refer to as …

THANK is a tractable heterogeneous-agent New-Keynesian model that captures analytically
core micro-heterogeneity channels of quantitative-HANK: cyclical inequality and risk; self …

We provide a Keynesian growth theory in which pessimistic expectations can lead to very
persistent, or even permanent, slumps characterized by high unemployment and weak …

We investigate the role of macroprudential policies in mitigating liquidity traps. When
constrained households engage in deleveraging, the interest rate needs to fall to induce …

Exchange rate fluctuations could influence economic activity not only via the standard trade
channel, but also through a financial channel, which operates through the impact of …

We propose an overlapping generations New Keynesian model in which a permanent (or
very persistent) slump is possible without any self-correcting force to full employment. The …

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 …

Using a rich dataset on government spending forecasts in Japan, we provide new evidence
on the effects of unexpected changes in government spending when the nominal interest …