This paper studies the effects of FOMC forward guidance. We begin by using high frequency identification and direct measures of FOMC private information to show that puzzling responses of private sector forecasts to movements in federal funds futures rates on FOMC announcement days can be...

The focus of this contribution is on macroeconomic and financial policies. It relies on fiscal, monetary and financial stability policies, which aim to develop sustainable and resilient market economies. This contribution relies on our macroeconomic model, which accounts for the financial...

The Eurozone's reaction to the economic crisis beginning in late 2008 involved both efforts to mitigate the arbitrarily destructive effects of markets and vigorous pursuit of policies aimed at austerity and deflation. To explain this paradoxical outcome, this paper builds on Karl Polanyi's...

1. Introduction -- Part I. The “Party Period” Before the Crisis -- 2. The Costs and Benefits for Joining a Common Currency with Emphasis on Weaker Member States: The Pre-crisis Debate -- 3. Greece Before the Crisis: The Critical Years in Domestic Politics -- 4. IMF and EU Reports on Greece...

The recovery from the recession after the financial crisis, in both the UK and the US, has been very slow compared with other similar events in history. During the period before the financial crash and afterwards, monetary policy deviated from the very effeective rules-based approach of the...

The great moderation lulled macroeconomists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces us to question that assessment. In this paper, we review the main elements of the pre-crisis framework still hold, and take a tentative...