Similar Search Results

Fehr, Ernst; Tyran, Jean-Robert - In: American Economic Review 91 (2001) 5, pp. 1239-1262

This paper shows that a small amount of individual-level money illusion may cause considerable aggregate nominal inertia after a negative nominal shock. In addition, our results indicate that negative and positive nominal shocks have asymmetric effects because of money illusion. While nominal...

Persistent link: https://www.econbiz.de/10005757305

Inflation Persistence, the NAIRU, and the Great Recession

Watson, Mark W. - In: American Economic Review 104 (2014) 5, pp. 31-36

The rate of inflation fell far less over the period 2007-2013 than in the period 1979-1985 despite similar large increases in the unemployment rate. This paper asks why. Possible explanations include a change in the persistence of inflation, changes in NAIRU, and other shocks. A change in the...

Persistent link: https://www.econbiz.de/10010815706

A Macroeconomic Model with a Financial Sector

Brunnermeier, Markus K.; Sannikov, Yuliy - In: American Economic Review 104 (2014) 2, pp. 379-421

amplification effects, the economy is prone to instability and occasionally enters volatile crisis episodes. Endogenous risk, driven … by asset illiquidity, persists in crisis even for very low levels of exogenous risk. This phenomenon, which we call the … volatility paradox, resolves the Kocherlakota (2000) critique. Endogenous leverage determines the distance to crisis …

Persistent link: https://www.econbiz.de/10010736781

The Role of Policy in the Great Recession and the Weak Recovery

Taylor, John B. - In: American Economic Review 104 (2014) 5, pp. 61-66

during the decade and that the seriousness of financial crisis caused the slow recovery. …

Persistent link: https://www.econbiz.de/10010773944

Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession

Shoag, Daniel - In: American Economic Review 103 (2013) 3, pp. 121-24

Has government spending raised income and employment since 2008? I use new data on state pension returns during the Great Recession to recover exogenous changes in spending. Instrumenting with these return shocks, I estimate that each dollar of windfall-financed spending raised local incomes by...

Persistent link: https://www.econbiz.de/10010659374

The Natural Rate of Interest and Its Usefulness for Monetary Policy

Barsky, Robert; Justiniano, Alejandro; Melosi, Leonardo - In: American Economic Review 104 (2014) 5, pp. 37-43

We estimate a state-of-the-art DSGE model to study the natural rate of interest in the United States over the last 20 years. The natural rate is highly procyclical, and fell substantially below zero in each of the last three recessions. Although the drop was of comparable magnitude across the...

Persistent link: https://www.econbiz.de/10010815527

Does Money Illusion Matter? Reply

Fehr, Ernst; Tyran, Jean-Robert - In: American Economic Review 104 (2014) 3, pp. 1063-71

The data in Fehr and Tyran (FT, 2001) and Luba Petersen and Abel Winn (PW,2013) show that money illusion plays an important role in nominal price adjustment after a fully anticipated negative monetary shock. Money Illusion affects subjects' expectations, and causes pronounced nominal inertia...

Persistent link: https://www.econbiz.de/10010815742

Sticky Prices and Monetary Policy: Evidence from Disaggregated US Data

Boivin, Jean; Giannoni, Marc P.; Mihov, Ilian - In: American Economic Review 99 (2009) 1, pp. 350-84

This paper shows that the recent evidence that disaggregated prices are volatile does not necessarily challenge the hypothesis of price rigidity used in a large class of macroeconomic models. We document the effect of macroeconomic and sectoral disturbances by estimating a factor-augmented...

Persistent link: https://www.econbiz.de/10004999866

Information Technology and the U.S. Economy

Jorgenson, Dale W. - In: American Economic Review 91 (2001) 1, pp. 1-32

Persistent link: https://www.econbiz.de/10005573126

Evolution and Intelligent Design

Sargent, Thomas J. - In: American Economic Review 98 (2008) 1, pp. 5-37

Persistent link: https://www.econbiz.de/10005563556