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Discouraging Deviant Behavior in Monetary Economics — by Lawrence Christiano, Yuta Takahashi

September 4, 2018 Bilal 0

Discouraging Deviant Behavior in Monetary Economics — by Lawrence Christiano, Yuta Takahashi https://ift.tt/2NGs5Kw Discouraging Deviant Behavior in Monetary Economics NBER Working Paper No. 24949 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth We consider a model in which monetary policy is governed by a Taylor rule. The model has a unique equilibrium near the steady state, but also has other equilibria. The introduction of a particular escape clause into monetary policy works like the Taylor principle to exclude the other equilibria. We reconcile our finding about the escape clause with the sharply different conclusion reached in Cochrane (2011). Atkeson […]

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Authoritarian Elites — by Adlai Newson, Francesco Trebbi

September 4, 2018 Bilal 0

Authoritarian Elites — by Adlai Newson, Francesco Trebbi https://ift.tt/2Q2pBYq Authoritarian Elites NBER Working Paper No. 24966 Issued in August 2018 NBER Program(s):Development Economics, Political Economy We explore the role of ruling elites in autocratic regimes and provide an assessment of tools useful to clarify the structure of opaque political environments. We first showcase the importance of analyzing autocratic regimes as non-unitary actors by discussing extant work on nondemocracies in Sub-Saharan Africa and China, where the prevailing view of winner-take-all contests can be clearly rejected. We show how specific biographical information about powerful cadres helps shed light upon the composition of […]

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Rising Government Debt and What to Do About It — by Pierre Yared

September 4, 2018 Bilal 0

Rising Government Debt and What to Do About It — by Pierre Yared https://ift.tt/2NILeLO Rising Government Debt and What to Do About It NBER Working Paper No. 24979 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, Public Economics, Political Economy Over the past four decades, government debt as a fraction of GDP has been on an upward trajectory in advanced economies, approaching levels not reached since World War II. While normative macroeconomic theories can explain the increase in the level of debt in certain periods as a response to macroeconomic shocks, they cannot explain the broad-based long-run trend in […]

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Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis

September 4, 2018 Bilal 0

Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis https://ift.tt/2oAQBBV Quantitative Sovereign Default Models and the European Debt Crisis NBER Working Paper No. 24981 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics, Monetary Economics A large literature has developed quantitative versions of the Eaton and Gersovitz (1981) model to analyze default episodes on external debt. In this paper, we study whether the same framework can be applied to the analysis of debt crises in which domestic public debt plays a prominent role. We consider a model where […]