This paper examines the effects of labor-replacing capital, which we call robots, on business cycle dynamics using a New Keynesian model with a role for both traditional and robot capital. We find that shocks to the price of robots have effects on output, employment, wages, and labor's share of...

This paper contains an empirical study of the effects of credibility on the cost of disinflation. The analysis is based on a dataset comprised of seventy-two disinflation episodes from 19 OECD countries. We measure the "ex ante credibility" of a disinflation episode as the probability of a...

This paper proposes a Wicksellian alternative to the IS-LM/AS-AD model that serves as the centerpiece of most intermediate macroeconomics textbooks. The model has a simple, intuitive structure that is consistent with modern monetary theory and the actual operating procedures of the Federal...