Central banks use macroeconomic models to help frame the issues that they face, to mold their ideas, and to guide them in their decisionmaking. While a wide range of models are available, economists ...

Just how important is money? Few would deny that it plays a key role in the economy.­ During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the ...

Keynesian economics is back. Government spending to stimulate the economy is all the rage and has won the day in Congress. Of course, conservatives are uneasy. “It’s hardly a secret that Obama is a ...