money demand falls, while a positive goods productivity shock raises temporary output and velocity. The paper explains such … important for velocity during less stable times and the goods productivity shock more important during stable times. …

money demand falls, while a positive goods productivity shock raises temporary output and velocity. The paper explains such … important for velocity during less stable times and the goods productivity shock more important during stable times. …

standard neoclassical models cannot generate a simultaneous increase in consumption, investment, and hours in response to news … shocks, and that optimism in these models tends to reduce investment and hours. When technology is vintage specific, however … optimism raises utilization, consumption, investment, hours, and output. …

Adam Smith's ideas about the invisible hand, was a major contribution to an ongoing tradition in monetary theory in whose …

subdiscipline has evolved. It considers some implications for today's awkward economic facts of aspects of Keynes' General Theory …

overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment … and employment all rise and then crash) in response to such a news shock, in a standard real business cycle model. However … a welfare-reducing boom-bust cycle in response to a news shock. We explore the possibility that integrating credit …