Recently added articles from Federal Reserve Bank of Minneapolis Quarterly Review:
If exchange rates are random walks, then almost everything we say about monetary policy is wrong *.
Jul 01, 2008; ... The key question asked of standard monetary models used for policy analysis is, How do changes in short-term interest rates affect the economy? The standard answer built into these models is that such policy changes affect the economy by changing the means of macroeconomic aggregates and ...
Back to the future with Keynes *.
Jul 01, 2008; ... In the early stages of the Great Depression, John Maynard Keynes took time out from his role as a policy adviser, research economist, and economic journalist to write "Economic Possibilities for our Grandchildren," an essay presenting his forecasts for the world economy of the 21st ...
On the needed quantity of government debt.
Nov 01, 2007; ... We need to change our way of thinking regarding government debt. First, the government debt that a country owes to its citizens is not debt in the usual sense of the word. This form of government debt is a mechanism that facilitates intergenerational borrowing and lending, and is an ...
Modeling Great Depressions: the depression in Finland in the 1990s *.
Nov 01, 2007; ... The general equilibrium growth model is the workhorse of modern economics. It is the accepted paradigm for studying most macroeconomic phenomena, including business cycles, tax policy, monetary policy, and growth. The collection of papers edited by Kehoe and Prescott (2002, 2007) and ...
Optimal monetary policy: what we know and what we don't know.
Oct 01, 2005;