, the model cannot account for the low level of consumption (or high saving) as a proportion of income observed in the data …. An examination of provincial level consumption data suggests that the absence of channels for intranational consumption … risk sharing may be an important reason why the business-cycle model has trouble accounting for Chinese consumption and …

recognition to the intertemporal nature of households' saving decisions. Like traditional IS-LM, however, the optimizing version … tends to understate the value of money as an indicator for monetary policy. …

evidence is not as "shovel ready" as one would like. Although consumption and investment clearly respond to tax incentives and …

central bank money. The key differences between cash and central bank digital currency (CBDC) include transaction efficiency …

rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor …, wages, and consumption. After presenting the ingredients of such a model, the paper develops an algorithm to solve this …

optimizing general equilibrium model intended for analysis of issues regarding monetary policy and cyclical fluctuations. The …, forward-looking aspect to saving behavior and leads to a model of aggregate demand that is tractable and usable with a wide …

MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …