The 20th anniversary of Economic and Monetary Union (EMU) offers an opportunity to look
back on the ECB's record and learn lessons that can improve the conduct of policy in the …

We augment a standard monetary dynamic general equilibrium model to include a
Bernanke-Gertler-Gilchrist financial accelerator mechanism. We fit the model to US data …

Can increased uncertainty about the future cause a contraction in output and its
components? An identified uncertainty shock in the data causes significant declines in …

We argue that the vast bulk of movements in aggregate real economic activity during the
Great Recession were due to financial frictions. We reach this conclusion by looking through …

Abstract We simulate the Federal Reserve second Large‐Scale Asset Purchase programme
in a DSGE model with bond market segmentation estimated on US data. GDP growth …

We propose a general and highly efficient method for solving and estimating general
equilibrium heterogeneous‐agent models with aggregate shocks in discrete time. Our …

We develop and estimate a general equilibrium search and matching model that accounts
for key business cycle properties of macroeconomic aggregates, including labor market …

We review a growing literature that incorporates endogenous risk premiums and risk-taking
in the conduct of monetary policy. Accommodative policy can create an intertemporal …

There is a widespread belief that changes in expectations may be an important independent
driver of economic fluctuations. The news view of business cycles offers a formalization of …

This paper studies a New Keynesian business cycle model with agents who are averse to
ambiguity (Knightian uncertainty). Shocks to confidence about future TFP are modeled as …