This paper studies price stability and debt sustainability when the real rate exceeds trend growth (r g) in a New Keynesian model with endogenous technology growth through R&D. Under debt-stabilizing ("passive") fiscal policy the Taylor principle is not sufficient for determinacy. Instead,...

This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a...

This policy brief prepared by ECLAC examines the economic and social impact of the war in Ukraine on the region, and offers countries recommendations on how to address its effects. The document analyzes economic and social variables as well as the different sectors of the regional economy that...