Showing 1 - 10 of 142
This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights on the joint determination of expectations and macroeconomic outcomes. We review and synthesize recent work on global games, beauty contests, and their applications. We...
Persistent link: https://www.econbiz.de/10013224988
Persistent link: https://www.econbiz.de/10014339682
Persistent link: https://www.econbiz.de/10011663081
Persistent link: https://www.econbiz.de/10011570949
Persistent link: https://www.econbiz.de/10011911140
We review how realistic frictions in information and/or rationality arrest general equilibrium (GE) feedbacks. In one specification, we maintain rational expectations but remove common knowledge of aggregate shocks. In another, we replace rational expectations with Level-k Thinking or a smooth...
Persistent link: https://www.econbiz.de/10012938745
We study how fiscal deficits are financed in environments with two key features: (i) nominal rigidity and (ii) a violation of Ricardian equivalence due to finite lives or liquidity constraints. In such environments, deficits contribute to their own financing via two channels: a boom in real...
Persistent link: https://www.econbiz.de/10014250202
Persistent link: https://www.econbiz.de/10015117827
Persistent link: https://www.econbiz.de/10013350442
Persistent link: https://www.econbiz.de/10015072986