Price stickiness is one of the key assumptions of New Keynesians macroeconomic models used to support monetary policy analysis and medium term macroeconomic forecasting by central banks. However, there has been little micro level evidence to back this assumption in developing countries which are...

The argument made in this manuscript is that the two traditional macroeconomic tools, fiscal policy and monetary policy, are insufficient to bring back efficiently into equilibrium an economy that has had a major crisis. Both traditional macro-tools only work through the demand side, and there...

In these notes I go over some basic aspects of the analysis of business cycles and aggregate fluctuations from a dynamic stochastic general equilibrium (DSGE) perspective. I build a cannonical DSGE model with a small number of representative agents and a large set of distortionnary wedges...

These notes go over some basic aspects of the analysis of business cycles and aggregate fluctuations from a dynamic stochastic general equilibrium (DSGE) perspective. I build a canonical DSGE model with a small number of representative agents and a large set of distortionary wedges standing for...

The paper demonstrates possibilities of both convergence to the steady state and emergence of stable growth cycles around it in a simple macrodynamic model of debt-financed investment-led growth. The growth cycles are robust and are generated endogenously, either due to the existence of a...

This paper demonstrates the diverse dynamical possibilities arising out of a simple macroeconomic model of debt-financed investment-led growth in the presence of interest rate rules. We show possibilities of convergence to steady state, growth cycles around it as well as various complex...

Interest rates in the USA and in other countries have experienced persistent and generalised declines since the 1980s. The main interpretations of this phenomenon ignore the role of monetary factors, such as financial and monetary policy. The essay proposes an alternative interpretation based on...

The hypothesis of the paper is that the macroeconomic policies implemented in Peru during the recessions of 1998-2000 and 2008-2009 were substantially different. This explains why economic performance in the second was much better than in the first. In monetary policy, both the exchange rate of...

The credit-to-GDP gap (credit gap) is thought to be a promising leading indicator of financial crises, but the trend of the credit-output ratio must be appropriately estimated before credit gaps can be used for this purpose. To appropriately estimate this ratio, it is necessary to know the...

The credit-to-GDP gap (credit gap) is thought to be a promising leading indicator of financial crises, but the trend of the credit-output ratio must be appropriately estimated before credit gaps can be used for this purpose. To appropriately estimate this ratio, it is necessary to know the...