This paper examines the effects of labor-replacing capital, which we call robots, on business cycle dynamics using a New Keynesian model with a role for both traditional and robot capital. We find that shocks to the price of robots have effects on output, employment, wages, and labor's share of...

This paper proposes a Wicksellian alternative to the IS-LM/AS-AD model that serves as the centerpiece of most intermediate macroeconomics textbooks. The model has a simple, intuitive structure that is consistent with modern monetary theory and the actual operating procedures of the Federal...

This paper argues that the Federal Reserve’s failure to control inflation during the 1970s was due to constraints imposed by the political environment. Members of the Fed understood that a serious attempt to tackle inflation would be unpopular with the public and would generate opposition from...