https://doi.org/10.1111/iere.12573Stagnation and fiscal policy are examined in a nonlinear stochastic New-Keynesian model with adaptive learning. There are three steady states. The steady state targeted by policy is locally but not globally stable under learning. A severe pessimistic expectations shock can trap the economy in a stagnation regime, underpinned by a low-level steady state, with falling inflation and output. A large fiscal stimulus may be needed to avoid or emerge from stagnation, and the impacts of forward guidance, credit frictions, central bank credibility, and policy delay are studied. Our model encompasses a wide range of outcomes arising from pessimistic expectations shocks.Peer reviewe
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interes...
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal po...
This study analyzes the economic dynamics in a basic New Keynesian model adjusted for imperfect, het...
https://doi.org/10.1111/iere.12573Stagnation and fiscal policy are examined in a nonlinear stochasti...
Stagnation and fiscal policy are examined in a nonlinear stochastic New-Keynesian model with adaptiv...
Funding: National Science Foundation (Grant Number(s): SES-1559209; Grant recipient(s): GEORGE W. EV...
In Evans, Guse, and Honkapohja (2008) the intended steady state is locally but not globally stable u...
We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in whic...
Financial support from National Science Foundation Grant no. SES-1025011 is gratefully acknowledged....
Progress in stochastic macroeconomic modeling justifies revisiting Milton Friedman's program on the ...
34 p.We examine global economic dynamics under learning in a New Keynesian model in which the inter...
We study misperceptions of scal policy in a New Keynesian model based on the imperfect cognition fr...
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interes...
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal po...
We consider the impact of anticipated policy changes when agents form expectations using adaptive le...
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interes...
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal po...
This study analyzes the economic dynamics in a basic New Keynesian model adjusted for imperfect, het...
https://doi.org/10.1111/iere.12573Stagnation and fiscal policy are examined in a nonlinear stochasti...
Stagnation and fiscal policy are examined in a nonlinear stochastic New-Keynesian model with adaptiv...
Funding: National Science Foundation (Grant Number(s): SES-1559209; Grant recipient(s): GEORGE W. EV...
In Evans, Guse, and Honkapohja (2008) the intended steady state is locally but not globally stable u...
We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in whic...
Financial support from National Science Foundation Grant no. SES-1025011 is gratefully acknowledged....
Progress in stochastic macroeconomic modeling justifies revisiting Milton Friedman's program on the ...
34 p.We examine global economic dynamics under learning in a New Keynesian model in which the inter...
We study misperceptions of scal policy in a New Keynesian model based on the imperfect cognition fr...
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interes...
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal po...
We consider the impact of anticipated policy changes when agents form expectations using adaptive le...
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interes...
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal po...
This study analyzes the economic dynamics in a basic New Keynesian model adjusted for imperfect, het...