Woodford argues that commitment to a sound monetary policy rule, such as a Taylor rule, cannot by itself guarantee price stability, because Ricardian equivalence fails to make fiscal policy irrelevant …
Against fears that electronic money will erode central banks' monopoly over a monetary base and so undermine their power to control inflation, Woodford argues that monetary policy works through …
PublishedClassicCarnegie-Rochester Conference Series on Public PolicyPublished Dec 1995
Woodford shows that the price level remains determinate even under two forms of radical money-supply endogeneity long thought to destroy monetary control -- a central-bank interest-rate peg and …
This 1996 American Economic Review paper by Julio Rotemberg and Michael Woodford tests standard real-business-cycle (RBC) models against the forecastable -- rather than total -- movements in U.S. …
PublishedClassicAmerican Economic Journal: MacroeconomicsPublished Jan 2011
This paper works through a series of simple, analytically solvable New Keynesian models to show that the size of the government-spending multiplier depends almost entirely on the monetary policy …
Extending a New Keynesian model to give the central bank's balance sheet a genuine role in equilibrium determination, the authors distinguish three independent dimensions of monetary policy -- the …
Evaluating Taylor's interest-rate rule against an explicit optimizing New Keynesian model, this paper coins the "Taylor principle" -- that the nominal rate must eventually rise by more than any …
PublishedClassicBrookings Papers on Economic ActivityPublished Jan 2003
This 2003 Brookings Papers on Economic Activity article by Gauti Eggertsson and Michael Woodford builds a fully dynamic New Keynesian general-equilibrium model — Calvo (1983) staggered pricing, money …