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Romer, Christina D.; Romer, David H. - 2022

This paper analyzes the contributions of monetary and fiscal policy to postwar economic recoveries. We find that the Federal Reserve typically responds to downturns with prompt and large reductions in interest rates. Discretionary fiscal policy, in contrast, rarely reacts before the trough in...

Persistent link: https://www.econbiz.de/10013309225

The Evolution of Economic Understanding and Postwar Stabilization Policy

Romer, Christina D.; Romer, David H. - 2022

functioning of the economy and the effects of policy. We document the changes in beliefs using contemporaneous discussions of the … economy and policy by monetary and fiscal policymakers and, for the period since the late 1960s, using the Federal Reserve …'s internal forecasts. We find that policymakers' understanding of the economy has not exhibited steady improvement. Instead, the …

Persistent link: https://www.econbiz.de/10013322316

International Coordination in the Design of Macroeconomic Policy Rules

Taylor, John B. - 2021

The paper examines international issues that arise in the design and evaluation of macroeconomic policy rules. It begins with a theoretical investigation of the effects of fiscal and monetary policy in a two-country rational expectations model with staggered wage and price setting and with...

Persistent link: https://www.econbiz.de/10013247284

Surprising Comparative Properties of Monetary Models : Results from a New Data Base

Taylor, John B. - 2010

In this paper we investigate the comparative properties of empirically-estimated monetary models of the U.S. economy …

Persistent link: https://www.econbiz.de/10012757616

Estimated Impact of the Fed's Mortgage-Backed Securities Purchase Program

Stroebel, Johannes - 2010

We examine the quantitative impact of the Federal Reserve's mortgage-backed securities (MBS) purchase program. We focus on how much of the recent decline in mortgage interest rate spreads can be attributed to these purchases. The question is more difficult than frequently perceived because of...

Persistent link: https://www.econbiz.de/10013149572

Fiscal Space and the Aftermath of Financial Crises : How it Matters and Why

Romer, Christina D. - 2019

In OECD countries over the period 1980–2017, countries with lower debt-to-GDP ratios responded to financial distress with much more expansionary fiscal policy and suffered much less severe aftermaths. Two lines of evidence together suggest that the relationship between the debt ratio and the...

Persistent link: https://www.econbiz.de/10012871942

New Keynesian Versus Old Keynesian Government Spending Multipliers

Cogan, John F.; Cwik, Tobias J.; Taylor, John B.; … - 2021

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 alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy...

Persistent link: https://www.econbiz.de/10013313664

The Macroeconomic Effects of Tax Changes : Estimates Based on a New Measure of Fiscal Shocks

Romer, Christina D. - 2010

This paper investigates the impact of changes in the level of taxation on economic activity. We use the narrative record -- presidential speeches, executive-branch documents, and Congressional reports -- to identify the size, timing, and principal motivation for all major postwar tax policy...

Persistent link: https://www.econbiz.de/10012759933

Why Some Times are Different : Macroeconomic Policy and the Aftermath of Financial Crises

Romer, Christina D. - 2017

Analysis based on a new measure of financial distress for 24 advanced economies in the postwar period shows substantial variation in the aftermath of financial crises. This paper examines the role that macroeconomic policy plays in explaining this variation. We find that the degree of monetary...

Persistent link: https://www.econbiz.de/10012945611

Monetary Policy and the Well-Being of the Poor

Romer, Christina D.; Romer, David H. - 2022

This paper investigates monetary policy's influence on poverty and inequality in both the short run and the long run. We find that the short-run and long-run relationships go in opposite directions. The time-series evidence from the United States shows that a cyclical boom created by...

Persistent link: https://www.econbiz.de/10014208354