An estimation of an optimal program of distortionary taxes, money growth, and borrowing to finance a stream of expenditures based on a real business cycle model in which distribution issues between the rich and poor play a fundamental role in policy decisions.

A study of the effects of expectations and central bank credibility on the economy's dynamic transition path during a disinflation. Using a version of the Fuhrer-Moore model, it compares simulations under different specifications that vary according to the way expectations are formed and the...

This paper investigates how responses of US macroeconomic activities to monetary policy shocks depend on the state of broker-dealer leverage. The analysis makes use of leverage data to create an indicator series that distinguishes above and below trend leverage states for the economy which is...