The model identifies perceived demand and supply shocks on each day, along with their persistence and associated risk premiums. We find that financial markets started to predict the post-COVID surge ...

The model features dynamic properties that align with theoretical priors and empirical evidence and displays sensible data-matching and forecasting capabilities, especially for credit indicators. We ...

Keynesian economics comes from economist John Maynard Keynes, author of the 1936 book "The General Theory of Employment, Interest and Money." Keynes believed the government could manage demand to ...

This paper explores the positive and normative consequences of government bond issuances in a New Keynesian model with heterogeneous agents, focusing on how the stock of government bonds affects the ...

Keynesian economics is an economic theory, and the basic premise is that aggregate demand serves as the primary driver of a Skip to main content PREMIUM PRODUCTS ...

Keynesian economics is a macroeconomic theory that advocates for active government intervention to manage economic cycles, particularly during recessions and depressions. Developed by British ...

Sophocles Mavroeidis, Mikkel Plagborg-Møller, James H. Stock, Empirical Evidence on Inflation Expectations in the New Keynesian Phillips Curve, Journal of Economic Literature, Vol. 52, No. 1 (MARCH ...

Hybrid New Keynesian models. Hybrid New Keynesian models have the canonical model at their core, but they introduce a number of important modifications. Typically these modifications seek to generate ...