demand in recessions. We build a New Keynesian model with incomplete asset markets and labor market frictions, featuring an …

panel data on family income, and an index of investments in children in time and goods, from the Children of the National …

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

reduce slack in labor markets. But because the slow-and-steady recovery lasted so long, many pre-recession peaks were …