Publications

6 publications found, searching for 'Alfonso Palacio-Vera '

• Working Paper No. 786
  January 21, 2014

  The Rational Expectations Hypothesis

  Alfonso Palacio-Vera and Iván H. Ayala
  Abstract

  The rational expectations hypothesis (REH) is the standard approach to expectations formation in macroeconomics. We discuss its compatibility with two strands of Karl Popper´s philosophy: his theory of knowledge and…more

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• Working Paper No. 685
  September 07, 2011

  Quantitative Easing, Functional Finance, and the “Neutral” Interest Rate

  Alfonso Palacio-Vera
  Abstract

  The main purpose of this study is to explore the potential expansionary effect stemming from the monetization of debt. We develop a simple macroeconomic model with Keynesian features and four…more

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• Working Paper No. 664
  March 31, 2011

  Can Portugal Escape Stagnation without Opting Out from the Eurozone?

  Alfonso Palacio-Vera and Pedro Leao
  Abstract

  The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. We analyze the…more

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• Working Paper No. 478
  November 03, 2006

  On Lower-bound Traps

  Alfonso Palacio-Vera
  Abstract

  We present a simple theoretical framework that integrates the notion of the natural or neutral interest rate, liquidity preference theory, and the monetary policy practice by modern central banks. We…more

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• Working Paper No. 475
  August 22, 2006

  Capital Stock and Unemployment

  Alfonso Palacio-Vera, Ana Rosa Martinez-Canete, Elena Marquez de la Cruz, and Ines Perez-Soba Aguilar
  Abstract

  This paper examines the proposition that capital stock relative to aggregate output has been an important variable in the determination of the Non-Accelerating Inflation Rate of Unemployment (NAIRU) over the…more

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• Working Paper No. 430
  November 22, 2005

  Are Long-run Price Stability and Short-run Output Stabilization All That Monetary Policy Can Aim For?

  Giuseppe Fontana and Alfonso Palacio-Vera
  Abstract

  A central tenet of the so-called "new consensus" view in macroeconomics is that there is no long-run trade-off between inflation and unemployment. The main policy implication of this principle is…more

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