Search results for "Keynes"
showing 10 items of 72 documents
Households' Balance Sheets and the Effect of Fiscal Policy
2022
Using households' balance-sheet composition in the Panel Survey of Income Dynamics, we identify six household types. Since 1999, there has been a decline in the share of patient households and an increase in the share of impatient households with negative wealth. Using a six-agent New Keynesian model with search and matching frictions, we explore how changes in households' shares affect the transmission of government spending shocks. We show that the relative share of households in the left tail of the wealth distribution plays a key role in the aggregate marginal propensity to consume, the magnitude of fiscal multipliers, and the distributional consequences of government spending shocks. W…
Entre la ortodoxia y la revolución: Schumpeter y Keynes
2019
Tal vez, Joseph Alois Schumpeter y John Maynard Keynes fueron los economistas que mejor diagnosticaron la naturaleza de los nuevos cambios del capitalismo. ¿Cambios? ¿Qué cambios? ¿Cuándo? A finales del siglo XIX. En este texto se repasan sus principales contribuciones. En el contexto de la crisis, la profunda crisis de la modernidad más reciente. En este artículo se examina y se revisa su distinto compromiso, su compromiso con la realidad política. Sus propuestas fueron no solo un ataque contra la ortodoxia heredada, sino también una alternativa razonable y razonada a la revolución.
Money and the natural rate of interest: structural estimates for the United States and the Euro area
2008
We examine the role of money, allowing for three competing environments: the New Keynesian model with separable utility and static money demand; a non-separable utility variant with habit formation; and a version with adjustment costs for holding real balances. The last two variants imply forward-looking behavior of real money balances, as it is optimal for agents to allow their forecast of future interest rates to affect current portfolio decisions. We distinguish between these specifications by conducting a structural econometric analysis for the U.S. and the euro area. FIML estimates confirm the forward-looking character of money demand. Using these estimates we find that, in response to…
Price convergence of peripheral European countries on the way to the EMU: A time series approach
2000
This paper examines price and inflation convergence between three European countries (Italy, Spain and the U.K.) and a European average and, alternatively, between them and Germany from the beginning of the 80's.
L'euro à la lumière des théories monétaires holistes contemporaines
2008
The thesis begins by explaining, in a first part, the genealogy of a heterodox tradition called “holist monetary approach”, which refuses dichotomic theories and the classical conception of the veil of money. It shows the proximities of these positions with a tradition consisting in thinking money as a “total social fact” involving far more than the three usual economic functions attributed to money. Recent research works conducted in France around Aglietta and Orléan fit in with this tradition. The thesis also leans on theories developed in Keynes' wake, sharing with the “social fact” approaches a holist methodology. The latter involves a main focus on macroeconomic analysis, which is, in …
What is next for the Washington consensus? The fifteenth anniversary, 1989-2004.
2004
Winter2004/2005, Vol. 27 Issue 2, p, 7p; (AN 15818079); International audience; The article reports on the fifteenth anniversary of the Washington consensus with special focus on the past fifteen years accomplishments. Washington consensus was promulgated in 1989. In the past fifteen years, the United States saw some impressive growth with strong employment, low inflation, and high productivity gains, while emerging countries were hit by a string of financial crises. It states that the economic performance of developing countries in the past 15 years is disappointing at best, alarming at worst. It talks about the contributions of globalization in redefining the international currency stage.…
World Interest Rates and Inequality: Insight from the Galor - Zeira Model
2018
In this paper, we study the relationship between changes in the world interest rate and within-country inequality during the 1985–2005 period in which the world interest rate sharply declined. In line with the predictions of the seminal model of Galor and Zeira [Income distribution and macroeconomics. Review of Economic Studies 60, 35–52], the analysis suggests that the decrease in the world interest rate is associated with a decrease in inequality in poor countries and an increase in inequality in rich ones.
HARVARD MEETS THE CRISIS: THE MONETARY THEORY AND POLICY OF LAUCHLIN B. CURRIE, JACOB VINER, JOHN H. WILLIAMS, AND HARRY D. WHITE
2015
The paper discusses the interpretation of the Great Depression and the policy decision making by four Harvard economists: Lauchlin B. Currie, Jacob Viner, John H. Williams, and Harry D. White. All were eminent scholars in the field of monetary and international economics, and were deeply involved in policy decisions during the New Deal. We will discuss how their Harvard training provided them with a common methodological and analytical perspective, and how this common perspective translated into specific policies when they moved from the academia to public service in the US administration. Their interpretation of the causes of the Great Depression and their policy proposals show the eclecti…
Debt Cancellation in the Classical and HellenisticPoleis: Between Demagogy and Crisis Management
2017
This article discusses the way the ancient Greeks dealt with public and private debts, focusing on one specific aspect: debt cancellation. On the one hand, ancient Greeks were aware of the risks en...
Eternal hilltop inflation
2016
We consider eternal inflation in hilltop-type inflation models, favored by current data, in which the scalar field in inflation rolls off of a local maximum of the potential. Unlike chaotic or plateau-type inflation models, in hilltop inflation the region of field space which supports eternal inflation is finite, and the expansion rate $H_{EI}$ during eternal inflation is almost exactly the same as the expansion rate $H_*$ during slow roll inflation. Therefore, in any given Hubble volume, there is a finite and calculable expectation value for the lifetime of the "eternal" inflation phase, during which quantum flucutations dominate over classical field evolution. We show that despite this, i…