Scott Sumner points us to this interesting proof that the Keynesian economic model must be true. For the Financial Times is crowing about the fact that when government spending rises then so does GDP.

The recent shake-up at the research department of the Federal Reserve Bank of Minneapolis has rekindled a discussion about the best macroeconomic model to use as a guide for policymakers. Should we ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation In recent years, New Keynesian dynamic stochastic general equilibrium (NK DSGE) models have become increasingly popular in ...

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 ...

According to Klein, Keynes's General Theory was crying out for empirical application. He set himself the task of implementing this extension. Our paper documents the different stages of his endeavor, ...

Which levels of interest rates along the yield curve are consistent with stable economic activity? We use expectations at the daily frequency reflected in financial market prices to extract the state ...

Harvard Historian Niall Ferguson has apologized for suggesting that John Maynard Keynes’ sexual orientation and lack of children made him indifferent to long-run economic issues. However, leaving the ...

Consumption-habits have become an integral component in new Keynesian models. However, consumption-habits can be modeled in a host of different ways and this diversity is reflected in the literature.