the leading shock candidates can explain fluctuations in output and hours. It concludes that we are much closer to …

and the short run equilibrium require a departure from zero inflation rate; (ii) in response to a markup shock, fiscal …

Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal … microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants …

Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and … control for the inflation rate. Fourth, traditional New Keynesian approaches analyze the impacts of fiscal stimuli on standard …

lower bound (ZLB) on nominal interest rates. In addition to the standard targeted-inflation equilibrium, we consider a … deflation equilibrium as well as a Markov sunspot equilibrium that switches between a targeted-inflation and a deflation regime … assumptions that the U.S. economy has been in either the targeted-inflation or the sunspot equilibrium. We consider a combination …

This paper studies the impact government expenditure has on inflation by examining an augmented Phillips curve implied …, Changes in government expenditure account for a substantial portion of inflation variations and provide new insights into the … "missing disinflation" puzzle, We also find that inflation and inflation expectations respond negatively to fiscal spending …