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 …

We investigate whether US government spending multipliers are higher during periods of
economic slack or when interest rates are near the zero lower bound. Using new quarterly …

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 use rich historical data on military procurement to estimate the effects of government
spending. We exploit regional variation in military buildups to estimate an “open economy …

Recently developed HANK models, which combine Heterogeneous Agents and New
Keynesian frictions, have had a considerable impact on macroeconomics. However, due to …

The economic crisis of 2008 started one of the most heated debates about US fiscal policy in
the past half century. With the federal funds rate close to zero—and output, inflation, and …

This article analyses the impact of strained government finances on macroeconomic stability
and the transmission of fiscal policy. Using a variant of the model by Cúrdia and Woodford …

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 …