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 …

the two-equation NK model, with an additional condition linking productivity growth to current and expected future output … gaps. Absent state contingency in the subsidies that correct the externalities associated with productivity growth, optimal … promises about future output gaps in a way that allows it to manipulate current productivity growth …

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 …

This paper analyzes conditions for determinacy in a new Keynesian model with endogenous growth. Endogenous growth … exogenous growth setup to ensure determinacy. …