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Today we live in a post-truth and highly digitalized era characterized by a flow of (mis-) information around the world. Identifying the impact of this information on stock markets and forecasting stock returns and volatilities has become a much more difficult task, perhaps almost impossible....
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This paper estimates a series of shocks to hit the US economy during the Great Depression, using a New Keynesian model … rise in military spending effectively brought an end to the Depression in 1941. With the economy at or near the zero … Depression ; expectations ; deflation ; zero bound ; liquidity trap …
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apparent necessity to accept deflation to preserve the gold standard and (2) his hope that deflation would overwhelm the price …
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This chapter compares alternative explanations of the Great Depression: the Monetarist explanation of (Friedman and Schwartz,.A Monetary History of the United States, 1867-1960, Princeton University Press, 1963), the Austrian explanation of Hayek and (Robbins,.The Great Depression, Macmillan,...
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