that, in theory and simulations, the learning rule does not converge to the rational expectations equilibrium (REE). We … previous forecast function. We show that in theory and simulations the two stage learning rule converges to the REE …

In the last half of the 1990s, labor productivity growth rose in the U.S. and fell almost everywhere in Europe. We … document changes in both capital deepening and multifactor productivity (MFP) growth in both the information and communication … technology (ICT) and non-ICT sectors. We view MFP growth in the ICT sector as investment-specific productivity (ISP) growth. We …

savings, the RER only depends on productivity spread between sectors (Balassa-Samuelson effect). If the constraint is too … tight and/or domestic savings too low, the RER depends on both net foreign assets (transfer effect) and productivity. We … then analyze the empirical implications of the model and find that, in accordance with the theory, the RER is mainly driven …

the source of debt which is most sensitive to shocks is foreign funding. In fact, any shock creates a wedge between the …

After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian …