In this paper we consider the implications of habits for optimal monetary policy, when those habits either exist at the level of the aggregate basket of consumption goods (`superficial' habits) or at the level of individual goods (`deep' habits: see Ravn, Schmitt-Grohe, and Uribe (2006))....

In today's dynamic environment, the change is inevitable and is the only constant thing, whether it is a change in attitude or thinking. The fast-food joints are a depiction of contemporary expertise, the conception of 'ready-cooked food to go'. Today's society depicts a contemporary swing like...

We present an example of how public policies affect the evolution of the economy by influencing consumption habits, life styles and work attitudes. In particular, we show that governments can boost long-run growth by moving public investment away from collective transportation systems and...