Compared with the period 1920-1990, the current monetary policy implementation techniques are relatively well-focused and transparent. In particular, (i) they mostly aim at achieving a well defined operational target (typically the overnight interest rate), (ii) monetary policy operations are...

This paper studies optimal policy in a business-cycle setting in which firms have a blurry understanding of the state of the economy due to informational or cognitive constraints. The latter are not only the source of nominal rigidity but also an impediment in the coordination of production. The...

This paper studies optimal policy in a business-cycle setting in which firms have a blurry understanding of the state of the economy due to informational or cognitive constraints. The latter are not only the source of nominal rigidity but also an impediment in the coordination of production. The...

When analysing any social phenomenon, encounters among different social science disciplines and fields of investigation dispersed over time and space may well produce illusory rapprochements. Such encounters nevertheless have great potential for producing truly common knowledge. In matters of...