In this paper we estimate simple Taylor rules paying particular attention to interest rate smoothing. Following English, Nelson, and Sack (2002), we employ a model in first differences to gain some insights into the presence and signifcance of the degree of partial adjustment as opposed to a...

This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...

The number of new dwellings built in Spain more than doubled between 1997 and 2004. Provisional estimates indicate that the figure might currently be over 800,000. Strikingly, this impressive response of supply to demand has not put a brake on housing prices, which have also doubled in real...