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During the course of the Great Recession and for long after, the Federal Reserve kept the main monetary policy rate at the zero lower bound (ZLB). (1,2) This policy was [...]

Eventually, the FOMC attempted to rein in inflation witha sequence of sharp rate increases starting in March2022. At the same time, knowledge of r* took on addedimportance during the pandemic and over the recovery asthe FOMC reduced its policy rate to the zero lower bound(ZLB) in March 2020. It is the equilibriumlevel of the real interest rate (computed as the nominalpolicy rate less a measure of inflation) when the economyis at its long-run trend level of growth with inflationat the Federal Reserve's target and when there are noexcess supply or demand pressures. [Extracted from the article]

At first glance, many macroeconomic time series exhibit some form of nonlinearity. For instance, output growth and inflation show less volatility in the 1980s and 1990s than during the Great [...]

In this article, I investigate the size of the returns to scale in aggregate U.S. production. I do so by estimating the aggregate returns to scale within a theory-consistent general [...]

Time-varying parameter vector autoregressions (TVP-VARs) have become an increasingly popular tool for analyzing the behavior of macroeconomic time series. TVP-VARs differ from more standard fixed-coefficient VARs in that they allow [...]

The dramatic rise in long-term unemployment has been one of the most striking features of the Great Recession of 2007-09. The number of unemployed workers who have been out of [...]

The FTPL, as the name implies, is an economic theory of price level determination that gives fiscal policy a central role. The key insight is that future fiscal conditions determine the current price level, whereby monetary and fiscal policy are connected by the government budget constraint. Analyzing Fiscal Policy Matters More Than Ever: The Fiscal Theory of the Price Level and Inflation The fiscal theory of the price level is a theoretical framework for understanding how monetary and fiscal policies interact in the determination of macroeconomic outcomes. [Extracted from the article]

We analyze the aggregate implications of intra-firm bargaining in a fully fledged, yet simple, general equilibrium business cycle model with search and matching frictions in the labor market. The notion [...]

In recent years, the field of international trade has experienced a renaissance in theory and measurement, much of which is rooted in the seminal contribution by Melitz (2003). Melitz's theory [...]

Men in their prime working age, defined as men between the ages of 25 and 64, constitute 33 percent of the civilian non-institutionalized population in the United States. At the [...]

The search and matching model of Mortensen and Pissarides (1994) has become a popular and successful framework for analyzing labor market dynamics in dynamic stochastic general equilibrium (DSGE) models. (1) [...]

It has long been recognized that inventory investment plays a large role in explaining fluctuations in real gross domestic product (GDP), although it makes up only a small fraction of [...]

The search and matching model has become the workhorse for labor market issues in macroeconomics. It is a conceptually attractive framework as it provides a rationale for the existence of [...]

Open economies are characterized by the ability to trade goods both intra- and intertemporally, that is, their residents can move goods and assets across borders and over time. These transactions [...]

The evaluation of equilibria in linear rational expectations models is provided.