Barro and Gordon build a positive (not merely normative) theory of monetary policy in a natural-rate model, aiming to reconcile two stylized facts -- inflation and money growth that are persistently …
PublishedClassicJournal of International EconomicsPublished May 1985
This 1985 Journal of International Economics paper by Kenneth Rogoff shows that increased cooperation between central banks does not automatically raise welfare, because cooperation can exacerbate …
PublishedClassicThe Quarterly Journal of EconomicsPublished Nov 1993
This 1993 Quarterly Journal of Economics paper by David Romer points out and empirically tests a previously unnoticed prediction of Kydland-Prescott-style models of monetary policy without …
PublishedClassicQuarterly Journal of EconomicsPublished Nov 1999
This paper modifies the neoclassical (Ramsey) growth model so that the household's instantaneous rate of time preference can vary with the time distance to the date being valued, following the …
This 1977 Journal of Political Economy paper by Finn Kydland and Edward Prescott argues that optimal control theory -- the standard technique proposed for macroeconomic stabilization policy -- is not …
This 1983 Journal of Monetary Economics paper by Robert Barro and David Gordon shows that a monetary authority acting with full discretion each period will generate more inflation on average than one …
A dynamic stochastic general equilibrium model in which a government that must roll over one-period debt can be forced into default purely because lenders expect it -- and a characterisation of …
This 1988 European Economic Review paper by Francesco Giavazzi and Marco Pagano asks why a high-inflation country would voluntarily submit to the EMS's fixed-but-adjustable exchange-rate discipline, …