inflation than output growth. Our estimated dynamic policy coefficients characterize the style of policy as a "bang …

employment even if inflation is fully anchored and the real interest rate significantly reduced. Our framework also sheds light … (iv) the low inflation puzzle under quantitative easing. …

China’s foreign asset positions because capital cannot flow out of China under capital controls. A related but deeper puzzle … that this literature fails to address is China’s high saving rate despite an astonishingly rapid income growth rate. This … paper argues that understanding China’s massive foreign reserves must start with a basic trade model (e.g., Melitz, 2003) in …

China’s average household saving rate is one of the highest in the world. One popular view attributes the high saving … rate to fast rising housing prices and other costs of living in China. This article uses simple economic logic to show that … rising housing prices and living costs per se cannot explain China’s high household saving rate. Although borrowing …

failures, China offers a unique opportunity to test the Keynesian notion that government expenditures (even as a pure waste of … aggregate resources) can have a fiscal multiplier larger than 1 on aggregate income. Perhaps even more exceptional is China … aggregate time-series data and panel data from 29 Chinese provinces, we find that the fiscal multiplier in China is larger than …