I model deflation, at zero nominal interest rate, in a microfounded general equilibrium model.
I show that deflation can be analyzed as a credibility problem if the government has only …

We propose a theory to explain why, and under what circumstances, a politician gives up
rent and delegates policy tasks to an independent agency. We apply this theory to monetary …

This paper examines the effects of quantitative easing implemented by the Bank of Japan (BoJ)
since early 2001, looking specifically at the impact on inflation expectations and real …

This paper revisits and proposes a resolution to an empirical and theoretical controversy
between Keynes and the “classics”(or monetarists). The controversy dates to Keynes’s General …

This paper suggests that the US recovery from the Great Depression was driven by a shift in
expectations. This shift was caused by President Franklin Delano Roosevelt's policy actions. …

… I study this model, and some extensions, in a companion paper, Eggertsson (2006), with …
(see also Eggertsson and Woodford, 2003b for further discussions about Japan). Eggertsson (…

Following the crisis of 2008, several central banks engaged in a new experiment by setting
negative policy rates. Using aggregate and bank level data, we document that deposit rates …

… The contractionary effect of cutting payroll taxes is closely related to Eggertsson (2008b)
that studies the expansionary effect of the National Industrial Recovery Act (NIRA) during the …

[US Treasury Secretary Henry Morgenthau, Jr.]: No, gentlemen, we have tried spending money.
We are spending more than we have ever spent before and it does not work. And I have …

… In 1987, Mr. Summers became the first social scientist ever to receive the annual Alan T.
Waterman … The chapter by Gauti Eggertsson and Neil Mehrotra chapter is theoretical, but the …