This paper investigates the impact of monetary policy on capital misallocation, focusing on its heterogeneous effects on firms. Using Spanish firm-level data spanning 1999 to 2019, we demonstrate that ...

The paper extends a standard semi-structural model to account for nonlinear and asymmetric effects of monetary policy credibility. In our setting, central bank credibility is proportional to the ...

The natural rate of interest, also known as r-star, is a key variable for analyzing fiscal and monetary policy. A novel ...

Monetary policy describes the ways in which the central banks change the money supply in order to accomplish certain economic objectives. In the U.S. this is done by the Federal Reserve.

Translating that from the model to every day economics it basically ... given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms of output.

Lastly, expansionary monetary policy may increase the money supply ... from tariffs could be counterbalanced by the stimulative effects of lower taxes, deregulation, and more disciplined federal ...

Monetary policy is either expansionary (mainly by lowering interest ... This is leading to imports becoming even costlier (negating the effect of some of the recent softening in commodity prices ...