We study the impact of market incompleteness and bounded rationality on the effectiveness
of make-up strategies. To do so, we simulate a heterogeneous-agent New Keynesian …

We study the implications of transformative artificial intelligence for asset prices, and in
particular, how financial market prices can be used to forecast the arrival of such technology …

This paper investigates exchange rate dynamics in open economies by incorporating
bounded rationality. We develop a small open-economy New Keynesian model with an …

When central banks announce cuts to future interest rates, the expected costs of government
debt service decrease, generating additional resources in future budgets. This paper …

This thesis is composed of three essays studying both monetary policy as well as economic
growth. The first two chapters study optimal monetary (and fiscal) policy. The third chapter …

Results We obtain four main results. First, our simulations predict that AIT outperforms IT in
terms of inflation and output stabilisation when there is an ELB. Second, the relative …