This paper reviews the theoretical and empirical literature on the effectiveness of fiscal
policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can …

This chapter reviews the role of temporary price and wage rigidities in explaining of the
dynamic relationship between money, real output, and inflation. The key properties to be …

Economists and economic policymakers believe that households' and firms' expectations of
future inflation are a key determinant of actual inflation. A review of the relevant theoretical …

Several academics and practitioners have pointed out that inflation follows a seemingly
exogenous statistical process, unrelated to the output gap, leading some to argue that the …

The 20th anniversary of Economic and Monetary Union (EMU) offers an opportunity to look
back on the ECB's record and learn lessons that can improve the conduct of policy in the …

About the cover The cover illustrates, as Alfred Marshall pointed out a century ago, that
economics is" a study of mankind in the ordinary business of life." Alois Schonn's classic …

Recent articles in the new growth literature find that growth and inflation are negatively
related, a finding that is usually thought to reflect a long-run relationship. But the inflation …

Snowdon and Vane s book is extremely welcome. Indeed the authors examine, compare,
and evaluate the evolution of the major rival stories comprising contemporary …

Economists have long emphasized the importance of expectations in determining
macroeconomic outcomes. Yet there has been almost no recent effort to model actual …

This paper examines inflation dynamics in the UniteG States since 1960, with a particular
focus on the Great Recession. A puzzle emerges when Phillips curves estimated over 1960 …