Keynesian economists (of all stripes) want fiscal policy (essentially, government budgets) to increase consumer demand. This thinking has several problems. Keynes argued, however, that money borrowed ...

Cambridge Journal of Economics, Vol. 39, No. 1 (January 2015), pp. 93-112 (20 pages) The outbreak of the financial crisis in 2008 witnessed a significant contraction in US consumption spending, as ...

We develop a new solution method for a broad class of discrete-time dynamic portfolio choice problems. The method efficiently approximates conditional expectations of the value function by using (i) a ...