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One of the more important questions in the area of quantitative economic
policy concerns the suitability of optimal control theory for economic
stabilization problems. Despite extensive theoretical ...
The Dual Nature of Forecast Targeting and Instrument Rules: A Comment on Michael Woodford’s ‘Forecast Targeting as a Monetary Policy Strategy: Policy Rules in Practice
Policy Rules Practice
2015/8/3
Michael Woodford’s chapter is fi lled with fascinating ideas and insights,
each carefully explained. Most importantly, he proposes an ambitious
future research program with the specifi c practical p...
Comment on Gabaix and Laibson, “The 6D bias and the equity premium puzzle”
premium puzzle Gabaix and Laibson
2015/7/23
An economy populated by a representative agent with power utility predicts
an equity premium which is far below the realized equity premium in postwar
data, at least for “reasonable parameters” for ...