Spanish Abstract: Indonesia ha sido tradicionalmente uno de los centros globales de abastecimiento de commodities, al punto que la búsqueda de una ruta alternativa a ella desencadena el descubrimiento de América. A pesar de su tradicional importancia, esta y muchas otras facetas suyas se...

A system of thought allowed for the free market price of land to cyclically go down to zero. This is the economics of Moses. The economics of Jesus is a restatement of the economics of Moses. The first was applied during Biblical times and the latter, united with Aristotle’s thought and...

Long-term real interest rates across the world have fallen by about 450 basis points over the past 30 years. The co-movement in rates across both advanced and emerging economies suggests a common driver: the global neutral real rate may have fallen. In this paper we attempt to identify which...

The European Union is mired in a bad economic equilibrium of stagnation and deflation – stag-deflation. While the problem is excess supply and inadequate demand, current policy, premised on private-sector-investment-led growth, aims to expand supply further through ultra-low interest rates....

This study finds that while present monetary and fiscal policy stances are likely to lead to robust growth and improved employment, this would come only at the expense of high government deficits, record foreign deficits, and rising ratios of government and foreign debt relative to GDP. Even...

Over the last decade a new consensus model has emerged in monetary macroeconomics, labelled New Keynesian macroeconomics (Clarida et al., 1999). It consists of three simple building blocs: a forward-looking IS-equation that is derived from the optimization problem of a representative household,...

Rational inattention theory is economic theory that recognizes that people have finite information-processing capacity, in the sense of Shannon and engineering information theory. This approach is still in the early stages of development, but it promises to provide a unified explanation for some...

We study the macroeconomic effects of the COVID-19 epidemic in a quantitative dynamic general equilibrium setup with nominal rigidities. We evaluate various containment policies and show that they allow to dramatically reduce the welfare cost of the disease. Then we investigate the role that...

We analyze a recent paper that claims that dollarizing an economy in the presence of a "dollar shortage" will provoke an immediate sharp reduction in real output and welfare. We find many problems with the model that supports this conclusion: confusion about the nature of a dollar shortage and...

Although the IS/LM-AS/AD model is still the central tool of macroeconomic teaching in most macroeconomic textbooks, it has been criticized by several economists. Colander demonstrated that the framework is logically inconsistent, Romer showed that it is unable to deal with a monetary policy that...