I study monetary and fiscal policy in liquidity trap scenarios, where the zero bound on the nominal interest rate is binding. I work with a continuous-time version of the standard New Keynesian model. Without commitment, the economy suffers from deflation and depressed output. I show that,...

This paper documents the abnormally slow recovery in the labor market during the Great Recession, and analyzes how mortgage modification policies contributed to delayed recovery. By making modifications means-tested by reducing mortgage payments based on a borrower's current income, these...

The adjustment of nominal wages to inflation has implications on the labor market as well as on other areas in economics. In this paper, we employ the Blanchard and Katz (1997, 1999) model of nominal wage determination and try to estimate the adjustment speed. By using the bounds testing...

The purpose of this paper is solely to address two interlinked methodological and theoretical questions concerning the Open Method of Coordination (OMC), using the European Employment Strategy as a case: First, what is the most appropriate approach to learning in the analyses of the processes of...

In spite of the exponentially increasing volume of the CDM system of the Kyoto Protocol, very few have so far come up with scholarly political economy analysis of its governance system. Based on interviews with the CDM system’s main stakeholders as well as through scrutiny of CDM related...

Mutual learning among the Member States is the primary purpose of the employment policy of the European Union. The two most important questions in this regard are how learning occurs and how much learning takes place. In this article I argue that the existing analyses of the effects of learning...

The purpose of this paper is to address two normative and interlinked methodological and theoretical questions concerning the Open Method of Coordination (OMC): First, what is the most appropriate approach to learning in the analyses of the processes of the European Employment Strategy (EES)?...

The Long-Wave theories of Nikolai Kondratiev and others claim to find mathematic waves in economic and other social data which are at present in dispute. Currently the theory is considered outside the scope of mainstream economics under several rationales. Despite the lack of mainstream...

This paper provides an overview of the evolution of macroeconomic thought from 1936, the year John Maynard Keynes published his general theory of employment, interest and money to the year 2010. It explores the reasons for the extension of the business cycle during the postwar period. The paper...

Eleven percent of the Malawian population is HIV infected. Eighteen percent of sexual encounters are casual. A condom is used one quarter of the time. A choice-theoretic general equilibrium search model is constructed to analyze the Malawian epidemic. In the developed framework, people select...