Journal ArticleDOI
Rethinking Macroeconomic Policy
Reads0
Chats0
TLDR
The authors review the main elements of the pre-crisis consensus, identify where we were wrong and what tenets of the framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework.Abstract:
The great moderation lulled macro-economists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces to question that assessment. This paper reviews the main elements of the pre-crisis consensus, identify where we were wrong and what tenets of the pre-crisis framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework.read more
Citations
More filters
Journal ArticleDOI
Macroprudential policy – a literature review
TL;DR: The recent financial crisis has highlighted the need to go beyond a purely micro approach to financial regulation and supervision and the number of policy speeches, research papers and conferences that discuss a macro perspective on financial regulation has grown considerably.
Journal ArticleDOI
Inflation and growth: new evidence from a dynamic panel threshold analysis
TL;DR: This paper introduced a dynamic panel threshold model to estimate inflation thresholds for long-term economic growth, which allows the estimation of threshold effects with panel data even in case of endogenous regressors.
Journal ArticleDOI
Cross‐Country Experiences and Policy Implications from the Global Financial Crisis
TL;DR: Claessens et al. as discussed by the authors analyzed post-crisis macroeconomic and financial sector performance for 58 advanced countries and emerging markets and showed a differential impact of old and new factors.
Journal ArticleDOI
Measuring the Natural Rate of Interest: International Trends and Determinants
TL;DR: This paper applied the Laubach-Williams methodology to the United States and three other advanced economies (Canada, the Euro Area, and the United Kingdom) and found that large declines in trend GDP growth and natural rates of interest have occurred over the past 25 years in all four economies.
Posted Content
Government Bond Risk Premiums in the EU Revisited: The Impact of the Financial Crisis
TL;DR: In this article, the authors look at US$ and DM/Euro denominated government bond spreads relative to US and German benchmark bonds before and after the start of the current financial crisis and find that bond yield spreads before and during the crisis can largely be explained on the basis of economic principles.
References
More filters
Journal ArticleDOI
What Do a Million Observations on Banks Say about the Transmission of Monetary Policy
Anil K. Kashyap,Jeremy C. Stein +1 more
TL;DR: The authors found that the impact of monetary policy on lending is stronger for banks with less liquid balance sheets, i.e., banks with lower ratios of securities to assets, and that this pattern is largely attributable to the smaller banks, those in the bottom 95 percent of the size distribution.
Journal ArticleDOI
Liquidity and Leverage
Tobias Adrian,Hyun Song Shin +1 more
TL;DR: In a financial system in which balance sheets are continuously marked to market, asset price changes appear immediately as changes in net worth, eliciting responses from financial intermediaries who adjust the size of their balance sheets as mentioned in this paper.
Journal ArticleDOI
The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks
TL;DR: This paper investigated the impact of tax changes on economic activity and found that tax increases are highly contractionary and that the behavior of output following these more exogenous changes indicates that the effects of tax increases were strongly significant, highly robust, and much larger than those obtained using broader measures of tax change.
Journal ArticleDOI
It's Baaack: Japan's Slump and the Return of the Liquidity Trap
TL;DR: In the early years of macroeconomics as a discipline, the liquidity trap-that awkward condition in which monetary policy loses its grip because the nominal interest rate is essentially zero, in which the quantity of money becomes irrelevant because money and bonds are essentially perfect substitutes-played a central role as mentioned in this paper.