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 …

We develop a quantitative monetary DSGE model with financial intermediaries that face
endogenously determined balance sheet constraints. We then use the model to evaluate the …

We augment a standard monetary dynamic general equilibrium model to include a
Bernanke-Gertler-Gilchrist financial accelerator mechanism. We fit the model to US data …

A large output gap accompanied by stable inflation close to its target calls for further
monetary accommodation, but the zero lower bound on interest rates has robbed the …

The origins of business cycles are still controversial among macroeconomists. This paper
contributes to this debate by studying the driving forces of fluctuations in an estimated new …

In the context of a dynamic, stochastic, general equilibrium model, we perform classical
maximum likelihood and Bayesian estimations of the contribution of anticipated shocks to …

Motivated by the evidence that risk premia are large and countercyclical, this paper studies a
tractable real business cycle model with a small risk of economic disaster, such as the Great …

We develop a dynamic multicountry general equilibrium model to investigate forces acting
on the global economy during the Great Recession and ensuing recovery. Our multisector …

We argue that positive co‐movements between land prices and business investment are a
driving force behind the broad impact of land‐price dynamics on the macroeconomy. We …

The argument that uncertainty about monetary and fiscal policy has been holding back the
recovery in the US during the Great Recession has a large popular appeal. This paper uses …