This paper analyzes how bounded rationality affects monetary and fiscal policy via an
empirically relevant enrichment of the New Keynesian model. It models agents' partial …

Why are interest rates so low in the Unites States? We find that they are low primarily
because the premium for safety and liquidity has increased since the late 1990s, and to a …

We examine the hypothesis that the slowdown in productivity following the Great Recession
was in significant part an endogenous response to the contraction in demand that induced …

Real risk-free interest rates have trended down over the past 30 years. Puzzlingly in light of
this decline,(1) the return on private capital has remained stable or even increased, creating …

We argue that the vast bulk of movements in aggregate real economic activity during the
Great Recession were due to financial frictions. We reach this conclusion by looking through …

This chapter studies the effects of FOMC forward guidance. We begin by using high-
frequency identification and direct measures of FOMC private information to show that …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and
real rigidities and ask: can a shock to the liquidity of private paper lead to a collapse in short …

This article studies the pruned state-space system for higher-order perturbation
approximations to dynamic stochastic general equilibrium (DSGE) models. We show the …

To what extent can monetary policy impact business innovation and productivity growth? We
use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the …

We study the macroeconomic effects of protectionism. First, using high-frequency trade
policy data, we present fresh evidence on the dynamic effects of temporary trade barriers …