rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis …

stochastic production economy without capital. The government finances an exogenous stream of purchases by levying distortionary …

-price, production economy without capital. It shows analytically that in this economy the nominal interest rate acts as an indirect tax …

order to stabilize the real economy. A modified Taylor curve, the forecast Taylor curve, showing the tradeoff between the … achieved an efficient stabilization of both inflation and the real economy and what relative weight on the stability of … inflation and the real economy has effectively been applied. Ex ante evaluation may be more relevant than evaluation ex post …

standard small open economy business cycle model. We calibrate eight versions of our model to match basic aggregate … economy …