This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

I use the valuation equation of government debt to understand fiscal and monetary policy in
and following the great recession of 2008–2009. I also examine policy alternatives to avoid …

The term “austerity” indicates a policy of sizeable reduction of govern-ment deficits and
stabilization of government debt achieved by means of spending cuts or tax increases, or …

We generalize the traditional, static Keynesian cross by deriving an intertemporal Keynesian
cross for the dynamic output response to government spending and taxes in microfounded …

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 …

We review the debate surrounding the macroeconomic effects of deficit reduction policies
(austerity). The discussion about" austerity" in general has distracted commentators and …

The financial crisis of 2007 to 2009 can be divided into two distinct phases. The first and
more limited phase from August 2007 to August 2008 stemmed from losses in one relatively …

We quantify government spending multipliers in US data using Bayesian prior and posterior
analysis of a monetary model with fiscal details and two distinct monetary-fiscal policy …

Renewed interest in fiscal policy has increased the use of quantitative models to evaluate
policy. Because of modelling uncertainty, it is essential that policy evaluations be robust to …

The paper subjects seven structural DSGE models, all used heavily by policymaking
institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments …