EconPapers    
Economics at your fingertips  
 

A New Keynesian Perspective on the Great Recession

Peter Ireland

No 735, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: With an estimated New Keynesian model, this paper compares the "great recession" of 2007-09 to its two immediate predecessors in 1990-91 and 2001. The model attributes all three downturns to a similar mix of aggregate demand and supply disturbances. The most recent series of adverse shocks lasted longer and became more severe, however, prolonging and deepening the great recession. In addition, the zero lower bound on the nominal interest rate prevented monetary policy from stabilizing the US economy as it had previously; counterfactual simulations suggest that without this constraint, output would have recovered sooner and more quickly in 2009.

Keywords: recession; New Keynesian; zero lower bound (search for similar items in EconPapers)
JEL-codes: E32 E52 (search for similar items in EconPapers)
Date: 2010-04-01
New Economics Papers: this item is included in nep-cba, nep-cmp, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://fmwww.bc.edu/EC-P/wp735.pdf main text (application/pdf)

Related works:
Journal Article: A New Keynesian Perspective on the Great Recession (2011)
Journal Article: A New Keynesian Perspective on the Great Recession (2011) Downloads
Working Paper: A New Keynesian Perspective on the Great Recession (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:735

Access Statistics for this paper

More papers in Boston College Working Papers in Economics from Boston College Department of Economics Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().

 
Page updated 2025-03-30
Handle: RePEc:boc:bocoec:735