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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

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

Fiscal Space and the Aftermath of Financial Crises : How it Matters and Why

Romer, Christina D. - 2019

In OECD countries over the period 1980–2017, countries with lower debt-to-GDP ratios responded to financial distress with much more expansionary fiscal policy and suffered much less severe aftermaths. Two lines of evidence together suggest that the relationship between the debt ratio and the...

Persistent link: https://www.econbiz.de/10012871942

The Missing Transmission Mechanism in the Monetary Explanation of the Great Depression

Romer, Christina D. - 2013

-articulated and documented transmission mechanism of monetary shocks to the real economy. It begins by reviewing the challenge to …

Persistent link: https://www.econbiz.de/10013087874

A New Data Set on Monetary Policy : the Economic Forecasts of Individual Members of the FOMC

Romer, David H. - 2010

This paper describes a new data set of the forecasts of output growth, inflation, and unemployment prepared by individual members of the Federal Open Market Committee. The paper discusses the scope of the data set, possibilities for extending it, and some potential uses. It offers a preliminary...

Persistent link: https://www.econbiz.de/10013151648

Credit Channel or Credit Actions? an Interpretation of the Postwar Transmission Mechanism

Romer, Christina D. - 2008

This paper shows that the disproportionate impact of tight monetary policy on banks' ability to lend is largely the consequence of Federal Reserve actions aimed at reducing bank loans directly, rather than an inherent feature of the monetary transmission mechanism. We provide two types of...

Persistent link: https://www.econbiz.de/10012774825

A Rehabilitation of Monetary Policy in the 1950s

Romer, Christina D.; Romer, David H. - 2021

Monetary policy in the United States in the 1950s was remarkably modern. Analysis of Federal Reserve records shows that policymakers had an overarching aversion to inflation and were willing to accept significant costs to prevent it from rising to even moderate levels. This aversion to inflation...

Persistent link: https://www.econbiz.de/10013219168

Does Monetary Policy Matter? a New Test in the Spirit of Friedman and Schwartz

Romer, Christina D.; Romer, David H. - 2021

This paper uses the historical record to isolate episodes in which there were large monetary disturbances not caused by output fluctuations. It then tests whether these monetary changes have important real effects. The central part of the paper is a study of postwar U.S. monetary history. We...

Persistent link: https://www.econbiz.de/10013248115

Openness and Inflation : Theory and Evidence

Romer, David H. - 2021

This paper points out and tests a straight forward but previously unnoticed prediction of models in which the absence of precommitment in monetary policy leads to excessive inflation. Because unanticipated monetary expansion leads to real exchange rate depreciation, and because the harms of real...

Persistent link: https://www.econbiz.de/10013210693

Institutions for Monetary Stability

Romer, Christina D.; Romer, David H. - 2021

importantly, from imperfect understanding of the economy and the effects of policy. Using recent and historic episodes from the …

Persistent link: https://www.econbiz.de/10013242907