COVID-19 crisis, an omnibus of supply and demand shocks, affects output, unemployment, and inflation, and how it leads to … disaggregated data, sectoral supply and demand shocks on their own generate more than 10% inflation, and negative intertemporal … explains about half the reduction in real GDP, and putting both together results in 0.3% inflation and as much as 8 …

This paper presents a synthesis of capital theory and business cycle analysis. Capital is the neglected child of …

properly accounts for asset pricing facts. I find that the Ramsey optimal monetary policy yields an inflation rate above 3 ….5% and inflation volatility close to 1.5%. The same model calibrated to a counterfactually low equity premium implies an … optimal inflation rate close to zero and inflation volatility less than 10 basis points, consistent with much of the existing …