(Re)Evaluating recent macroeconomic policy in the US
University of Glasgow; Polytechnic of Porto; University of Porto
New Keynesian DSGE model with strategic monetary-fiscal policy interactions, distortionary taxation, geometric maturity structure for government debt, Markov-switching policy regimes, and zero lower bound constraint on interest rates
Calvo price setting with backward-looking rule of thumb pricing
Section 6, Fig. 3
Shadow interest rate analysis ZLB2008: Conservative Fed would have set rates to -4% in 2008Q4