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The Imbalances of the Bretton Woods System 1965 to 1973 : U.S. Inflation, the Elephant in the Room

Bordo, Michael D. - 2018

This paper argues that the key deep underlying fundamental for the growing international imbalances leading to the collapse of the Bretton Woods system between 1971 and 1973 was rising U.S. inflation since 1965. It was driven in turn by expansionary fiscal and monetary policies—the elephant in...

Persistent link: https://www.econbiz.de/10012906267

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

New-Keynesian Economics : An As-Ad View

Benigno, Pierpaolo - 2010

economy is depressed because some agents are deleveraging, fiscal policy is more powerful and the multiplier can be quite big …

Persistent link: https://www.econbiz.de/10012757664

Fiscal and Financial Crises

Bordo, Michael D. - 2016

Interconnections between banking crises and fiscal crises have a long history. We document the long-run evolution from classic banking panics towards modern banking crises where financial guarantees are associated with crisis resolution. Recent crises feature a feedback loop between bank...

Persistent link: https://www.econbiz.de/10012997361

Is Deflation Depressing? Evidence from the Classical Gold Standard

Bordo, Michael D.; Redish, Angela - 2021

which could intervene in the gold market to shield the domestic economy from external conditions. We proceed by identifying … separate supply' shocks, money supply shocks and demand shocks using a Blanchard-Quah methodology. We model the economy as a … small open economy on the gold standard and identify the shocks by imposing long run restrictions on the impact of the …

Persistent link: https://www.econbiz.de/10013220513

Three Great American Disinflations

Bordo, Michael D. - 2007

This paper analyzes the role of transparency and credibility in accounting for the widely divergent macroeconomic effects of three episodes of deliberate monetary contraction: the post-Civil War deflation, the post-WWI deflation, and the Volcker disinflation. Using a dynamic general equilibrium...

Persistent link: https://www.econbiz.de/10012777317

The Great Depression and the Friedman-Schwartz Hypothesis

Christiano, Lawrence J.; Motto, Roberto; Rostagno, Massimo - 2022

We evaluate the Friedman-Schwartz hypothesis that a more accommodative monetary policy could have greatly reduced the severity of the Great Depression. To do this, we first estimate a dynamic, general equilibrium model using data from the 1920s and 1930s. Although the model includes eight...

Persistent link: https://www.econbiz.de/10013309234

Deep Recessions, Fast Recoveries, and Financial Crises : Evidence from the American Record

Bordo, Michael D. - 2012

Do steep recoveries follow deep recessions? Does it matter if a credit crunch or banking panic accompanies the recession? Moreover does it matter if the recession is associated with a housing bust? We look at the American historical experience in an attempt to answer these questions. The answers...

Persistent link: https://www.econbiz.de/10013104399