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Replication data for: Liquidity Traps and Jobless Recoveries

Version
1
Resource Type
Dataset
Creator
  • Schmitt-Grohé, Stephanie
  • Uribe, Martín
Publication Date
2017-01-01
Description
  • Abstract

    This paper proposes a model that explains the joint occurrence of liquidity traps and jobless growth recoveries. Its key elements are downward nominal wage rigidity, a Taylor-type interest rate feedback rule, the zero lower bound on nominal interest rates, and a confidence shock. Absent a change in policy, the model predicts that low inflation and high unemployment become chronic. With capital accumulation, the model predicts, in addition, an investment slump. The paper identifies a New Fisherian effect, whereby raising the nominal interest rate to its intended target for an extended period of time can boost inflationary expectations and thereby foster employment.
Availability
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Relations
  • Is supplemented by
    DOI: 10.1257/mac.20150220 (Text)
Publications
  • Schmitt-Grohé, Stephanie, and Martín Uribe. “Liquidity Traps and Jobless Recoveries.” American Economic Journal: Macroeconomics 9, no. 1 (January 2017): 165–204. https://doi.org/10.1257/mac.20150220.
    • ID: 10.1257/mac.20150220 (DOI)

Update Metadata: 2019-10-13 | Issue Number: 1 | Registration Date: 2019-10-13

Schmitt-Grohé, Stephanie; Uribe, Martín (2017): Replication data for: Liquidity Traps and Jobless Recoveries. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. http://doi.org/10.3886/E114127V1