Guvenen, McKay, and Ryan estimate a stochastic income process for US male workers that simultaneously matches five empirical regularities from Social Security Administration administrative panel data …
This paper characterizes optimal monetary and fiscal policy rules in a heterogeneous-agent New Keynesian (HANK) model and finds that a "dual mandate" central bank's optimal targeting rule is identical …
This paper shows that the standard New Keynesian prediction that forward guidance about interest rates far in the future is at least as powerful as guidance about current rates -- and grows …
This paper builds a business-cycle model merging the standard incomplete-markets model with the New Keynesian model of nominal rigidities to quantify how much automatic fiscal stabilizers (progressive …