This paper builds a theory of macroprudential policy whose only friction is nominal rigidity in goods and labor markets, possibly combined with a constraint on monetary policy such as the zero lower …
This paper derives a generalized Euler relation for aggregate consumption in incomplete-markets economies with idiosyncratic income risk, and shows that under specific benchmark conditions -- zero …
Working with a continuous-time New Keynesian model, this paper shows that discretionary monetary policy during a liquidity trap produces deflation and depression that get worse, not better, as prices …