Macroeconomic shocks and their propagation

VA Ramey - Handbook of macroeconomics, 2016‏ - Elsevier
This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

Monetary policy shocks: What have we learned and to what end?

LJ Christiano, M Eichenbaum, CL Evans - Handbook of macroeconomics, 1999‏ - Elsevier
This chapter reviews recent research that grapples with the question: What happens after an
exogenous shock to monetary policy? We argue that this question is interesting because it …

Austerity: When it Works and when it Doesn't

A Alesina, F Giavazzi, C Favero - 2019‏ - torrossa.com
The term “austerity” indicates a policy of sizeable reduction of govern-ment deficits and
stabilization of government debt achieved by means of spending cuts or tax increases, or …

Wage-price spirals

G Lorenzoni, I Werning - Brookings Papers on Economic Activity, 2023‏ - muse.jhu.edu
We interpret recent inflation experience through the lens of a New Keynesian model with
price and wage rigidities and nonlabor inputs in inelastic supply. The model provides a …

Can government purchases stimulate the economy?

VA Ramey - Journal of Economic Literature, 2011‏ - aeaweb.org
This essay briefly reviews the state of knowledge about the government spending multiplier.
Drawing on theoretical work, aggregate empirical estimates from the United States, as well …

An empirical characterization of the dynamic effects of changes in government spending and taxes on output

O Blanchard, R Perotti - the Quarterly Journal of economics, 2002‏ - academic.oup.com
This paper characterizes the dynamic effects of shocks in government spending and taxes
on US activity in the postwar period. It does so by using a mixed structural VAR/event study …

Simple analytics of the government expenditure multiplier

M Woodford - American Economic Journal: Macroeconomics, 2011‏ - aeaweb.org
This paper explains the key factors that determine the output multiplier of government
purchases in New Keynesian models, through a series of simple examples that can be …

The six major puzzles in international macroeconomics: is there a common cause?

M Obstfeld, K Rogoff - NBER macroeconomics annual, 2000‏ - journals.uchicago.edu
The central claim in this paper is that by explicitly introducing costs of international trade
(narrowly, transport costs, but more broadly, tariffs, nontariff barriers, and other trade costs) …

Understanding the effects of government spending on consumption

J Galí, JD López-Salido, J Vallés - Journal of the european …, 2007‏ - academic.oup.com
Recent evidence suggests that consumption rises in response to an increase in government
spending. That finding cannot be easily reconciled with existing optimizing business cycle …

Macroeconomic effects from government purchases and taxes

RJ Barro, CJ Redlick - The Quarterly Journal of Economics, 2011‏ - academic.oup.com
For US annual data that include World War II, the estimated multiplier for temporary defense
spending is 0.4–0.5 contemporaneously and 0.6–0.7 over 2 years. If the change in defense …