We provide a continuous-time “risk-centric” representation of the New Keynesian model, which we use to analyze the … demand. In principle, interest rate policy is highly effective in dealing with shocks to asset valuations. However, in … valuations generates a demand recession. This reduces earnings and generates a negative feedback loop between asset prices and …

The notion that business cycles are driven by demand shocks is subtle. I first review some of the conceptual and … allows demand shocks to generate realistic business cycles even when nominal rigidity is absent or undone by appropriate …

We estimate the time-varying distribution of aggregate supply (AS) and aggregate demand (AD) shocks defined in the …

We examine the effect of a threat of entry on experimentation about demand by an incumbent monopolist when there is a …