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Basu, Susanto - 2007

This paper addresses the issue of how to give optimal advice about monetary policy when it is known that the advice may not be heeded. We examine a simple macroeconomic model in which monetary policy has the ability to stabilize output by offsetting exogenous shocks to aggregate demand. The...

Persistent link: https://www.econbiz.de/10012777153

Recent Developments in Macroeconomics : a Very Quick Refresher Course

Mankiw, N. Gregory - 2007

This paper outlines the major developments in macroeconomics over the past two decades. It examines the reasons for the breakdown in the consensus view of the 1960s and how this breakdown has guided research in macroeconomics. The introduction and importance of quot;rational expectationsquot;...

Persistent link: https://www.econbiz.de/10012777225

The Macroeconomist as Scientist and Engineer

Mankiw, N. Gregory - 2006

This essay offers a brief history of macroeconomics, together with an evaluation of what has been learned over the past several decades. It is based on the premise that the field has evolved through the efforts of two types of macroeconomist%u2014 those who understand the field as a type of...

Persistent link: https://www.econbiz.de/10012779829

An Asset Allocation Puzzle

Canner, Niko - 2008

This paper examines popular advice on portfolio allocation among cash, bonds, and stocks. It documents that this advice is inconsistent with the mutual-fund separation theorem, which states that all investors should hold the same composition of risky assets. In contrast to the theorem, popular...

Persistent link: https://www.econbiz.de/10012774873

An Exploration of Optimal Stabilization Policy

Mankiw, N. Gregory - 2011

This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...

Persistent link: https://www.econbiz.de/10013124860

Should the Fed Smooth Interest Rates? the Case of Seasonal Monetary Policy

Mankiw, N. Gregory - 2011

This paper examines the choice of monetary policy in response to seasonal fluctuations in the economy. It discusses the costs and benefits of smoothing interest rates over the seasons, which has been the Fed's policy since its founding in 1914, and presents simulations suggesting how the economy...

Persistent link: https://www.econbiz.de/10013127569

Optimal Taxation in Theory and Practice

Mankiw, N. Gregory - 2010

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax … policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened … theory. Moreover, some of theory's more subtle prescriptions, such as taxes that involve personal characteristics, asset …

Persistent link: https://www.econbiz.de/10013152503

Spreading the Wealth Around : Reflections Inspired by Joe the Plumber

Mankiw, N. Gregory - 2010

individuals' moral intuitions. The essay then explores an alternative normative framework, dubbed the Just Deserts Theory …

Persistent link: https://www.econbiz.de/10013146265

Imperfect Information and Aggregate Supply

Mankiw, N. Gregory - 2010

This paper surveys the research in the past decade on imperfect information models of aggregate supply and the Phillips curve. This new work has emphasized that information is dispersed and disseminates slowly across a population of agents who strategically interact in their use of information....

Persistent link: https://www.econbiz.de/10013147370

Sticky Information : A Model of Monetary Nonneutrality and Structural Slumps

Mankiw, N. Gregory; Reis, Ricardo - 2021

This paper explores a model of wage adjustment based on the assumption that information disseminates slowly throughout the population of wage setters. This informational frictional yields interesting and plausible dynamics for employment and inflation in response to exogenous movements in...

Persistent link: https://www.econbiz.de/10013219284