The Japanese Saving Rate

By Kaiji Chen, Ayşe İmrohoroğlu, and Selahattin İmrohoroğlu

American Economic Review, December 2006

Despite much work, economists have not been able to quantitatively account for the differences in the Japanese and U.S. saving rates after World War II. In this paper, we show that the use of actual Japanese total factor productivity growth rates in a sta...

Self-Fulfilling Currency Crises: The Role of Interest Rates

By Christian Hellwig, Arijit Mukherji, and Aleh Tsyvinski

American Economic Review, December 2006

We develop a model of currency crises, in which traders are heterogeneously informed, and interest rates are endogenously determined in a noisy rational expectations equilibrium. In our model, multiple equilibria result from distinct roles an interest ...

The Cross Section of Foreign Currency Risk Premia and Consumption Growth Risk

By Hanno Lustig and Adrien Verdelhan

American Economic Review, March 2007

Aggregate consumption growth risk explains why low interest rate currencies do not appreciate as much as the interest rate differential and why high interest rate currencies do not depreciate as much as the interest rate differential. Domestic investor...

Does Aid Affect Governance?

By Raghuram Rajan and Arvind Subramanian

American Economic Review, May 2007

Random Walk Expectations and the Forward Discount Puzzle

By Philippe Bacchetta and Eric van Wincoop

American Economic Review, May 2007

Systemic Illiquidity in the Federal Funds Market

By Adam B. Ashcraft and Darrell Duffie

American Economic Review, May 2007

Generalizing the Taylor Principle

By Troy Davig and Eric M. Leeper

American Economic Review, June 2007

The paper generalizes the Taylor principle—the proposition that central banks can stabilize the macroeconomy by raising their interest rate instrument more than one-for-one in response to higher inflation—to an environment in which reaction c...

The Case for Forecast Targeting as a Monetary Policy Strategy

[Symposium: Monetary Policy]

By Michael Woodford

Journal of Economic Perspectives, Fall 2007

At central banks around the world, including the Bank of England, Sweden's Riksbank, Norway's Norges Bank, and the Reserve Bank of New Zealand, policy is conducted on the basis of "inflation-forecast targeting": the central bank constructs quantitative pr...

How the World Achieved Consensus on Monetary Policy

[Symposium: Monetary Policy]

By Marvin Goodfriend

Journal of Economic Perspectives, Fall 2007

The worldwide progress in monetary policy is a great achievement and, especially considering the situation 30 years ago, a remarkable success story. I describe how the world achieved a working consensus on the core principles of monetary policy by the lat...

Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment

By John A. List and David Lucking-Reiley

American Economic Review, September 2000

Index by Author to Volume 11

Journal of Economic Perspectives, Fall 1997

Incentives in Organizations

[Symposium: The Firm and its Boundaries]

By Robert Gibbons

Journal of Economic Perspectives, Fall 1998

In this paper, the author summarizes four new strands in agency theory that help him think about incentives in real organizations. As a point of departure, The author begins with a quick sketch of the classic agency model. He then discusses static models ...

Front Matter

Journal of Economic Perspectives, Fall 1991

Did the Tax Reform Act of 1986 Simplify Tax Matters?

[Symposium: Tax Reform Act of 1986]

By Joel Slemrod

Journal of Economic Perspectives, Winter 1992

This paper attempts to assess whether the Tax Reform Act of 1986 simplified tax matters significantly, or at all. I conclude that, despite a few scattered signs that tax-related financial planning has declined, the compliance cost of the income tax system...

Retrospectives: Irving Fisher's Appreciation and Interest (1896) and the Fisher Relation

By Robert W. Dimand and Rebeca Gomez Betancourt

Journal of Economic Perspectives, Fall 2012

Irving Fisher's monograph Appreciation and Interest (1896) proposed his famous equation showing expected inflation as the difference between nominal interest and real interest rates. In addition, he drew attention to insightful remarks and numerical examp...

The Missing Transmission Mechanism in the Monetary Explanation of the Great Depression

By Christina D. Romer and David H. Romer

American Economic Review, May 2013

This paper examines the missing transmission mechanism in Friedman's and Schwartz's monetary explanation of the Great Depression. We review the challenge provided by the decline in nominal interest rates in the early 1930s, and show that the monetary expl...

Growth Forecast Errors and Fiscal Multipliers

By Olivier J. Blanchard and Daniel Leigh

American Economic Review, May 2013

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected. The re...

Unconventional Fiscal Policy at the Zero Bound

By Isabel Correia, Emmanuel Farhi, Juan Pablo Nicolini, and Pedro Teles

American Economic Review, June 2013

When the zero lower bound on nominal interest rates binds, monetary policy cannot provide appropriate stimulus. We show that, in the standard New Keynesian model, tax policy can deliver such stimulus at no cost and in a time-consistent manner. There is...

Sovereign Defaults: The Price of Haircuts

By Juan J. Cruces and Christoph Trebesch

American Economic Journal: Macroeconomics, July 2013

A main puzzle in the sovereign debt literature is that defaults have only minor effects on subsequent borrowing costs and access to credit. This paper comes to a different conclusion. We construct the first complete database of investor losses ("haircu...

News Shocks and the Slope of the Term Structure of Interest Rates

By André Kurmann and Christopher Otrok

American Economic Review, October 2013

We adopt a statistical approach to identify the shocks that explain most of the fluctuations of the slope of the term structure of interest rates. We find that one shock can explain the majority of unpredictable movements in the slope. Impulse response fu...