This paper analyzes the importance of monetary and fiscal policy shocks in explaining US macroeconomic fluctuations, and establishes new stylized facts. The novelty of our empirical analysis is that we jointly consider both monetary and fiscal policy, whereas the existing literature only focuses...

From the New York Times bestselling author of This Time Is Different, “a fascinating and important book” (Ben Bernanke) about the surprising reasons why paper money lies at the heart of many of the world’s most difficult problemsThe world is drowning in cash—and it’s making us poorer...

Incorporating adaptive learning into an open-economy DSGE model, we examine how monetary policy rules should adjust when agents’ information set deviates from that assumed under the rational expectations paradigm. We find that when agents observe current shocks but don’t know the parameters...