Optimal monetary policy with small and large unemployment gaps

An Economical Business-Cycle Model

This paper develops a policy-oriented business-cycle model with fluctuating unemployment and long zero-lower-bound episodes. The innovations are that producers and consumers meet through a matching function, and wealth enters the utility function.

April 2022 · Pascal Michaillat, Emmanuel Saez
Phase diagrams of the wealth-in-the-utility New Keynesian model

Resolving New Keynesian Anomalies with Wealth in the Utility Function

This paper resolves the anomalies of the New Keynesian model at the zero lower bound—explosive recession, forward guidance puzzle, multiplier puzzle—by introducing wealth into the utility function.

May 2021 · Pascal Michaillat, Emmanuel Saez
Phase diagram depicting a saddle path

Mathematics for Macroeconomics

This graduate course covers basic mathematical methods for macroeconomics: dynamic programming, optimal control, and differential equations.

October 2013 · Pascal Michaillat