This article integrates monetary policy into a very simple dynamic supermultiplier model with an accommodating supply side. Results show that monetary policy guided by a conventional Taylor rule may stabilize an economy around the steady-state path of demand-led growth following temporary demand...

This brief assesses the effect of a capital gains tax cut on firms' decisions to undertake new investment projects and the possible effect of such projects on economic growth and employment. The authors' analysis takes into account such factors as projects' degree of uncertainty, investors'...

We model demand-led growth with endogenous adjustment of labor supply and productivity to accommodate the demand-led path, reconciling Harrod's warranted rate of demand growth with supply. The model delivers a range of growth paths and unemployment rates rather than a single “natural rate.”...

We use consumption and balance sheet data disaggregated between the top 5% and the bottom 95% of US households by income to show that the bottom 95% went deeply into debt to mitigate the impact of their stagnant incomes on their consumption. We use micro data to calibrate an intrinsic Keynesian...