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U.S. labor and total-factor productivity growth slowed prior to the Great Recession. The timing rules explanations that …, consistent with a return to normal productivity growth after nearly a decade of exceptional IT-fueled gains. A calibrated growth … model suggests trend productivity growth has returned close to its 1973-1995 pace. Slower underlying productivity growth …
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We study how real exchange rate dynamics are affected by monetary policy in dynamic, stochastic, general equilibrium, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence – policy inertia or persistent policy shocks – is key. When the...
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Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...
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