Research by Topic

I.  AGGREGATE DEMAND: Everything you (I) always wanted to know about T-H-ANKbut were too afraid to ask

SLIDES I have been using to teach TANK (and implicitly some HANK) and summarize my research on the topic: from the recent papers NK Cross and Catch-22 to my earliest work starting 2004

1.  Limited Asset Market Participation, Monetary Policy and (Inverted) Aggregate Demand Logic, Journal of Economic Theory, 2008, 140(1) 162-196Ch. 1 of my 2004 Phd thesis, and ECB-WP        Short 2-page summary here (all you need to understand the key mechanism)Slide (also included as first slides above)

First paper to (1) build an NK model with two agents (TANK) modelling the distinction as: profits and Euler equation (hold assets) versus lack thereof, aka hand-to-mouththus emphasizing the key role of profits' distribution for aggregate demand (AD) amplification; (2) derive an aggregate Euler-IS (and a 3-equation TANK nesting RANK) featuring AD amplification of monetary policy MP effects with hand-to-mouth through the key role of the elasticity of individual income to aggregate income; (3) analyze the role of fiscal redistribution (of profits) for AD amplification of MP; and (4) derive a quadratic welfare function and do optimal policy in TANK.

2. The New Keynesian Cross, June 2018 NEW version; CEPR DP 11989Slides above

First draft was based on keyone lecture "Hand-to-mouth Macro" at ERMAS Cluj July 2015; Previously with subtitles: Understanding Monetary Policy with Hand-to-Mouth Households, or "with Two Agents"

3. A Catch-22 for HANK Models: No Puzzles, No Amplification, Dec. 2017Slides above 

New version coming soon. This version overlaps with "The NK Cross", that part will go. Supersedes the August 2017 CEPR DP 12231 The Puzzle, the Power, and the Dark Side: Forward Guidance Redux

4. Optimal Monetary Policy and Liquidity with Heterogeneous Households, with X. Ragot, October 2017 (first draft Feb. 2016); 

Previously circulated as "Monetary Policy and Inequality when Aggregate Demand depends on Liquidity", and then "Inequality, Liquidity, and Optimal Monetary Policy"

Older TANK (2004-2013): Empirical Estimation, Fiscal Multipliers, Explaining the Great Inflation, etc.

5. Asset Market Participation, Monetary Policy Rules and the Great Inflation’, with R. StraubReview of Economics and Statistics2013, vol. 95(2), pp 377-392 

6. Changes in the Output Euler Equation and Asset Markets Participation with R. StraubJournal of Economic Dynamics and Control2012, vol. 36(11), pages 1659-1672

7. Fiscal Policy, Business Cycles, and Labor-Market Fluctuations, with R. Straub, June 2004 MNB WP -- one of the first "TANK" papers, looking at fiscal policy.

8. What Accounts for the Change in U.S. Fiscal Policy Transmission?, with G. Mueller and A. Meier, Journal of Money, Credit and Banking, 2008, vol. 40(7), p 1439-1470

9. Public Debt and Redistribution with Borrowing Constraints, with T. Monacelli and R. Perotti, The Economic Journal, 2013, vol. 0, pages F64-F98, 02

Complementarity, comovement and fiscal multipliers: Non-separable utility U(C,L) or U(C,N)

10. Non-Separable Preferences, Fiscal Policy Puzzles and Inferior Goods, Journal of Money, Credit and Banking, 2009, vol. 41(2-3), pages 443-450.

11. Non-Separable Preferences, Frisch Labor Supply and the Consumption Multiplier of Government Spending: One Solution to a Fiscal Policy PuzzleJournal of Money, Credit and Banking2011, 43(1), 221-251    

12. Complementarity, Income, and Substitution: A U(C,N) Utility for Macro, March 2018, CEPR DP 

II. AGGREGATE SUPPLY: Firm entry, product creation and variety, markups and profitsand macroeconomic policies

1. Endogenous Entry, Product Variety and Business Cycles, with F. Ghironi and M. Melitz, Journal of Political Economy, 2012, vol. 120(2), 304-345

2. Optimal Monetary Policy with Endogenous Product Variety - with F. Ghironi and I. Fujiwara, Journal of Monetary Economics, 2014, 64, 1-20 (cited by Draghi in a speech to Nobel laureates here)

3. Monetary Policy and Business Cycles with Endogenous Entry and Product Variety, with F. Ghironi and M. Melitz, NBER Macroeconomics Annual, 22, 2007, 299-353

5. Monopoly Power and Endogenous Product Variety: Distortions and Remedies - with F. Ghironi and M. Melitz, R&R American Economic Journal: Macroeconomics older NBER WP w14383

III. OPTIMAL FISCAL AND MONETARY POLICIES: in Liquidity Traps and out, time inconsistency, delegation, cooperation
1. Optimal Forward GuidanceR&R American Economic Journal: Macroeconomics; April 2016;  CEPR DP.
2. Is Government Spending at the Zero Lower Bound Desirable?, with T. Monacelli and R. Perotti, R&R American Economic Journal: Macroeconomics older NBER WP 20687 
3. Tax Cuts vs. Spending Increases: Welfare at the Zero Lower Boundwith T. Monacelli and R. Perotti - First draft December 2011; Revised coming up
4.  Delegating Optimal Monetary Policy InertiaJournal of Economic Dynamics and Control , 2014, vol. 48, pp 63-78
5. The Time Inconsistency of Delegation-Based Time Inconsistency Solutions in Monetary Policy,  Journal of Optimization Theory and Applications2011, vol 150(3), 657-74
Florin Bilbiie,
Apr 23, 2017, 1:18 PM
Florin Bilbiie,
May 16, 2017, 2:50 AM