As is widely recognized, real interest rates in the early 1980s were at peaks not witnessed since the late 1920s. Less well perceived is the sharp decline in real interest rates in the middle 1980s to their average levels of the previous quarter century. This paper seeks to identify the...

Presented by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, at The University of Wisconsin – Madison, October 9, 2008

Presentation by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, for a Panel Discussion at the Conference on Financial Markets and Monetary Policy, Sponsored by the Federal Reserve Board and the Journal of Money, Credit, and Banking, Washington, D.C.,...

This paper finds strong evidence that many individuals choose to pay credit card bills even at the cost of mortgage delinquencies and foreclosures. While the popular press and some recent literature have suggested that this choice may emerge from steep declines in housing prices, we find...

This paper studies how foreign investors' concerns about model misspecification affect sovereign bond spreads. We develop a general equilibrium model of sovereign debt with endogenous default wherein investors fear that the probability model of the underlying state of the borrowing economy is...

I analyze the effects of an expected future reduction in government spending on the current level of economic activity. In a closed-economy dynamic general equilibrium setup with nominal rigidities, it is shown that expected future cuts in government spending generate an increase in current GDP....