: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth … increases the negative effect of nominal volatility on mean growth. …We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow …

Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … experience an increase in the variance of their productivity shocks) than during normal times? In this paper, I argue that … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less …

We study monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each … firm. We find the following results: (i) technology and government spending shocks have different effects on growth; (ii …) disinflationary monetary policies entail positive effects on growth; (iii) the optimal long-run inflation rate is zero; (iv) the …

We study Ramsey monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external …

We provide a Keynesian growth theory in which pessimistic expectations can lead to very persistent, or even permanent …, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in … the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full …

reduces the return to innovation, thus reducing TFP growth and generating a permanent loss in output. The origin of output … quantitative model provides evidence of significant output hysteresis resulting from endogenous growth over the Great Recession …

This paper presents an analysis of the joint determination of growth and business cycles with the view to studying the … long-run implications of short-term monetary stabilization policy. The analysis is based on a simple stochastic growth … variance of output growth irrespective of the source of fluctuations. It is also shown that, in spite of this, there may exist …

reduces the return to innovation, thus reducing TFP growth and generating a permanent loss in output. Using a purely quadratic … approximation to welfare under endogenous growth, we derive normative implications for monetary policy. Away from the zero lower …

We provide a Keynesian growth theory in which pessimistic expectations can lead to very persistent, or even permanent …, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in … the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full …

This paper examines how the mechanism driving growth in the economy is likely to affect the optimal monetary policy … response to shocks. We consider the Ramsey policy in a New Keynesian model in which growth is sustained by the creation of new … patented technologies through R&D and we compare the results obtained with those arising when growth is exogenous. We find that …