This chapter reviews the role of temporary price and wage rigidities in explaining of the
dynamic relationship between money, real output, and inflation. The key properties to be …

In recent years, a broad academic consensus has arisen that favors using rational
expectations sticky‐price models to capture inflation dynamics. We review the principal …

The US business sector has under-invested relative to Tobin's Q since the early 2000's. We
argue that declining competition is partly responsible for this phenomenon. We use a …

In the postwar era, developed economies have experienced two substantial trends in the net
capital share of aggregate income: a rise during the last several decades, which is well …

The paper moves from a discussion of the challenges posed by the crisis to standard
macroeconomics and the solutions adopted within the DSGE community. Although several …

The book takes a broad view of the subject matter of acroeconomics. A substantial portion of
the book is devoted to economic growth, and separate chapters are devoted to the natural …

We present a model embodying moderate amounts of nominal rigidities that accounts for the
observed inertia in inflation and persistence in output. The key features of our model are …

This paper investigates the effect of idiosyncratic (firm-level) policy distortions on aggregate
outcomes. Exploiting harmonized firm-level data for a number of countries, we show that …

A major challenge for monetary policy is predicting how exchange rate movements will
impact inflation. We propose a new focus: directly incorporating the underlying shocks that …

Product and labor market deregulation reduce and redistribute rents, leading economic
players to adjust to this new distribution. It typically comes with distribution and dynamic …