100 years after Böhm-Bawerks death and nearly 70 years after Keynes has died there is still fundamental controversy about the factors which determine the interest rate in the long run. While Economists in the Austrian tradition see it as solely driven by real phenomena, Keynesian authors mainly...

This paper provides a critique of zero lower bound (ZLB) economics which has become the new orthodoxy for explaining stagnation. ZLB economics is an extension of pre-Keynesian economics which attributes macroeconomic dysfunction to rigidities and market imperfections. The ZLB is the latest...

Emerging markets have experienced a sizeable decline in their neutral real interest rates until recently. In this paper we try to identify the main factors that contributed to it, with a focus on Brazil. We estimate an interval for Brazil's time-varying neutral rate based on a range of...

We show that taking into account the optimal response of agents subject to financial frictions reproduces two empirical facts on the response to interest rate shocks: the decrease in the stock of money on impact and the gradual decrease in the real stock of money. Financial frictions are...

This paper excavates the set of ideas known as modern monetary theory (MMT). The principal conclusion is that the macroeconomics of MMT is a restatement of elementary well-understood Keynesian macroeconomics. There is nothing new in MMT's construction of monetary macroeconomics that warrants the...

The author assesses the factors that determine market interest rates and the equilibrium conditions with respect to aggregate desired borrowings and savings. According to gain-loss utility, aggregate desired borrowings and savings are in equilibrium when market interest rates equal the...

We use simulations of the Federal Reserve's FRB/US model to examine the efficacy of a number of proposals for reducing the consequences of the zero bound on nominal interest rates. Among the proposals are: a more aggressive monetary policy; promises to make up any shortfall in monetary ease...

We study the general equilibrium of the housing market in an economy populated by overlapping generations of households. A contribution of the present paper is to solve for the housing market equilibrium in the presence of aggregate (interest rate) uncertainty with a realistic mortgage contract....

The primary aim of this presentation is to introduce my new book "Low Latency Interest Rate Markets" and expose the reader to the theory and practice of interest rate markets. Interest rate markets exist to support government, corporate and project finance, however the financing of large-scale...