From our perspective, "neutral" Fed policy going forward is a Funds Rate that hovers around 2% (perhaps in a range of 1.5% to 2.5%) alongside healthy liquidity provisioning. It's fair to ask, if 1.5% ...

This paper documents that households with higher marginal propensities to consume (MPCs) tend to consume goods with more ...

Recent news has been dominated by the trade war with China and uncertainty about the future path of Federal Reserve policy. These events are related, but not in the way you might assume. With ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

This is a preview. Log in through your library . Abstract The paper relaxes the one unit storage capacity imposed in the basic search-theoretic model of fiat money with indivisible real commodities ...

Many economists take for granted that the Federal Reserve has contributed positively to economic stabilization in the U.S., but its track record warrants a critical appraisal. Since the creation of ...

Founded in 1969, the Journal of Money, Credit and Banking (JMCB) is a leading professional journal read and referred to by scholars, researchers, and policymakers in the areas of money and banking, ...

Although it is generally recognized that the equilibrium real interest rate (ERR) varies over time, most recent work on policy analysis has been carried out under the assumption that this rate is ...

This week on the podcast, I had a great time talking about the monetary disequilibrium view of business cycles with Steve Horwitz. This perspective sees the deviation between desired and actual money ...

Discover the concept of underemployment equilibrium in economics, its effects on unemployment rates, and why it persists. Explore Keynesian insights into economic downturns.