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Romer, Christina D.; Romer, David H. - 2022

This paper analyzes the contributions of monetary and fiscal policy to postwar economic recoveries. We find that the Federal Reserve typically responds to downturns with prompt and large reductions in interest rates. Discretionary fiscal policy, in contrast, rarely reacts before the trough in...

Persistent link: https://www.econbiz.de/10013309225

Measuring the Output Responses to Fiscal Policy

Auerbach, Alan J. - 2010

A key issue in current research and policy is the size of fiscal multipliers when the economy is in recession. We …

Persistent link: https://www.econbiz.de/10013138770

Macroeconomic Frameworks

Auerbach, Alan J. - 2019

study the effects of fiscal stimulus. Our small-open-economy empirical setting permits us to estimate key macroeconomic …

Persistent link: https://www.econbiz.de/10012861210

Monetary and Fiscal Remedies for Deflation

Auerbach, Alan J. - 2011

Prevalent thinking about liquidity traps suggests that the perfect substitutability of money and bonds at a zero short-term nominal interest rate renders open-market operations ineffective for achieving macroeconomic stabilization goals. In an earlier paper, we showed that this reasoning does...

Persistent link: https://www.econbiz.de/10013133109

Optimal Monetary and Fiscal Policy in a Liquidity Trap

Eggertsson, Gauti B. - 2012

In previous work (Eggertsson and Woodford, 2003), we characterized the optimal conduct of monetary policy when a real disturbance causes the natural rate of interest to be temporarily negative, so that the zero lower bound on nominal interest rates binds, and showed that commitment to a...

Persistent link: https://www.econbiz.de/10013102000

Optimal Monetary and Fiscal Policy : A Linear Quadratic Approach

Benigno, Pierpaolo; Woodford, Michael - 2021

We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which …

Persistent link: https://www.econbiz.de/10013218299

Understanding the Fiscal Theory of the Price Level

Christiano, Lawrence J.; Fitzgerald, Terry J. - 2021

Persistent link: https://www.econbiz.de/10013223567

Optimal Inflation Targeting Under Alternative Fiscal Regimes

Benigno, Pierpaolo; Woodford, Michael - 2021

Standard discussions of flexible inflation targeting as an optimal monetary policy abstract completely from the consequences of monetary policy for the government budget. But at least some of the countries now adopting inflation targeting have substantial difficulty in controlling fiscal...

Persistent link: https://www.econbiz.de/10013238733

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound : Consequences of Limited Foresight

Woodford, Michael; Xie, Yinxi - 2022

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness of conventional monetary policy, under an assumption of bounded rationality. In particular, we reconsider the potential role of...

Persistent link: https://www.econbiz.de/10013291981

The Evolution of Economic Understanding and Postwar Stabilization Policy

Romer, Christina D.; Romer, David H. - 2022

functioning of the economy and the effects of policy. We document the changes in beliefs using contemporaneous discussions of the … economy and policy by monetary and fiscal policymakers and, for the period since the late 1960s, using the Federal Reserve …'s internal forecasts. We find that policymakers' understanding of the economy has not exhibited steady improvement. Instead, the …

Persistent link: https://www.econbiz.de/10013322316