This paper studies optimal policy in a stylised New Keynesian model that is extended to incorporate imperfect substitutability between short-term and long-term bonds. This simple modification provides a channel through which asset purchases by the policymaker can affect aggregate demand. Because assets are imperfect substitutes, central bank asset purchases that alter the relative supplies of a...

The notion that the quantity of money in an economy might be endogenously determined has a long history. Even so, it has never been part of mainstream economic thinking which has remained dominated by the view that the policymaker somehow controls the stock of money and that interest rates are market-determined. However, the need to design and operate a monetary policy that works for modern eco...

In a provocative paper, Gali (2014), showed that a policymaker who raises interest rates because of concerns about a bubble will paradoxically make the bubble bigger. In this paper, we argue Gali’s framework abstracts from the possibility that a policymaker who raises rates might crowd out resources that would have otherwise been spent on the bubble. We show that when we modify Gali’s model to ...

Abstract Evidence-based policymaking has the potential to improve efficiency and impact of climate mitigation adaptation policies, but that promise cannot be fulfilled if policymakers fail change their minds (update beliefs) when presented with new evidence. Research suggests individuals often resist changing mind, especially on polarized topics like action. Here we explore whether an ‘evidence...

Urban parks provide a multitude of health benefits for citizens navigating the challenges 21st-century living. And while this is well known by both scholars and practitioners, there less understanding about differential impacts park size, type facilities, community accessibility, management. This central concern research reported here, which part larger project titled ‘Better Parks, Healthier A...