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Cited by 220Monetary Policy and Economic ImpactEconomic theories and modelsFiscal Policies and Political Economy

The DOI matches its Crossref record; 101 of the 108 references it cites were found in a registry or an index.

Escaping the Great Recession

Bianchi, Francesco, Melosi, Leonardo·2017·American Economic Review
DOI 10.1257/aer.20160186
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Abstract

We show that policy uncertainty about how the rising public debt will be stabilized accounts for the lack of deflation in the US economy at the zero lower bound. We first estimate a Markov-switching VAR to highlight that a zero-lower-bound regime captures most of the comovements during the Great Recession: a deep recession, no deflation, and large fiscal imbalances. We then show that a microfounded model that features policy uncertainty accounts for these stylized facts. Finally, we highlight that policy uncertainty arises at the zero lower bound because of a trade-off between mitigating the recession and preserving long-run macroeconomic stability. (JEL E31, E32, E52, E62, G01, H63)

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Citations

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Research works printed but not linked: 2

  1. Plosser Charles I, 2012, Federal Reserve Bank of Philadelphia Annual Report, 11
  2. Sargent Thomas J, 1985, Federal Reserve Bank of Minneapolis Quarterly Review, 9, 15

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Metadata

Authors
Bianchi, F., & Melosi, L.
Affiliations
  • Duke University (US)
  • Federal Reserve Bank of Chicago (US)
ORCID
Bianchi, Francesco
Venue
American Economic Review
Publisher
American Economic Association
Published
2017-04-01
Volume
107
Issue
4
Pages
1030-1058
ISSN
0002-8282 (ISSN-L)
DOI
10.1257/aer.20160186
OpenAlex
W3121794754
Cited by
220
References
108
Citations by year
2026: 15 · 2025: 35 · 2024: 28 · 2023: 17 · 2022: 23 · 2021: 20 · 2020: 25 · 2019: 15 · 2018: 21 · 2017: 16
FWCI
49.47
Type
journal article
Language
en
Open access
closed
Locations
  • American Economic Review (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Cadmus - EUI Research Repository (European University Institute) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policies and Political Economy
Keywords
policy uncertainty, Great Recession, zero lower bound, public debt, fiscal imbalance, deflation, Markov-switching VAR, microfounded model, monetary policy, fiscal policy

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