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An Exploration of Optimal Stabilization Policy

Mankiw, N. Gregory - 2011

This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...

Persistent link: https://www.econbiz.de/10012461600

The Savers-Spenders Theory of Fiscal Policy

Mankiw, N. Gregory - 2000

The macroeconomic analysis of fiscal policy is usually based on one of two canonical models--the Barro-Ramsey model of infinitely-lived families or the Diamond-Samuelson model of overlapping generations. This paper argues that neither model is satisfactory and suggests an alternative. In the...

Persistent link: https://www.econbiz.de/10012471204

Are Tax Cuts Really Expansionary?

Mankiw, N. Gregory - 1984

probably satisfied for the U.S. economy …

Persistent link: https://www.econbiz.de/10012477645

The Adjustment of Expectations to a Change in Regime : A Study of the Founding of the Federal Reserve

Mankiw, N. Gregory - 1987

The founding of the Federal Reserve System in 1914 led to a substantial change in the behavior of nominal interest rates. We examine the timing of this change and the speed with which it was effected. We then use data on the term structure of interest rates to determine how expectations...

Persistent link: https://www.econbiz.de/10012476945

Aggregation and Stabilization Policy in a Multi-Contract Economy

Blinder, Alan S. - 1982

This paper presents a model of a multi-sector economy in which each sector is characterized by a different type of wage … policymaker to choose between stability in one sector and stability in another. The analysis also shows the economy cannot be … usefully aggregated into a single sector model. Such an aggregation misleads the economist as to the economy's underlying …

Persistent link: https://www.econbiz.de/10012478238

A Skeptic's Guide to Modern Monetary Theory

Mankiw, N. Gregory - 2020

This essay discusses a new approach to macroeconomics called modern monetary theory (MMT). It identifies the key differences between MMT and the approach found in mainstream textbooks. It concludes that while MMT contains some kernels of truth, its most novel policy prescriptions do not follow...

Persistent link: https://www.econbiz.de/10012479174

Imperfect Information and Aggregate Supply

Mankiw, N. Gregory - 2010

This paper surveys the research in the past decade on imperfect information models of aggregate supply and the Phillips curve. This new work has emphasized that information is dispersed and disseminates slowly across a population of agents who strategically interact in their use of information....

Persistent link: https://www.econbiz.de/10012462878

Sticky Information in General Equilibrium

Mankiw, N. Gregory - 2006

This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating their information sets, when setting prices, wages, and consumption. After presenting the...

Persistent link: https://www.econbiz.de/10012466056

Monetary Policy for Inattentive Economies

Ball, Laurence - 2003

This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of inflation-output dynamics. It then suggests that this problem may be solved with some recent...

Persistent link: https://www.econbiz.de/10012469212

What Measure of Inflation Should a Central Bank Target?

Mankiw, N. Gregory - 2002

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this problem and examines its microeconomic foundations. It...

Persistent link: https://www.econbiz.de/10012469328