Tag Archives: macro

Household Debt and the Dynamic Effects of Income Tax Changes

From James Cloyne and Paolo Surico: This paper investigates a new channel in the transmission of fiscal policy: household debt. Using a long span of expenditure survey data and a new narrative measure of exogenous income tax changes for the UK, … Continue reading

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Are Sticky Prices Costly? Evidence From The Stock Market

A new paper from Yuriy Gorodnichenco and Michael Weber: ABSTRACT: We propose a simple framework to assess the costs of nominal price adjustment using stock market returns. We document that, after monetary policy announcements, the conditional volatility rises more for … Continue reading

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Understanding Hysteresis

I presented these slides on Blanchard and Summers 1986 yesterday at the Berkeley Macro lunch. If you are interested in Hysteresis, this is one of the seminal papers in the literature. Overview  Periods of persistently high unemployment are not uncommon events in … Continue reading

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An argument for studying macroeconomics

Rather than answering million or billion dollar questions like microeconomists, macroeconomists try to answer trillion dollar questions. E.G. Why is actual output below potential output & when (or will) it come back to trend? From Yuriy Gorodnichenko (both the idea … Continue reading

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