This paper proposes a unified framework to study the permanent and transitory origins of US economic fluctuations. The model provides a reasonable account of the evolution of the economy in the post-war period and of the recent inflation episode. Overall, it constitutes a comprehensive framework to offer policy guidance and a flexible empirical counterpart to more heavily-parametrized structural models.

Economists Joel Mokyr, Philippe Aghion, and Peter Howitt. Ill. Niklas Elmehed © Nobel Prize Outreach Three economists working in the area of “innovation-driven economic growth” have won this year’s Nobel Memorial Prize in Economic Sciences.

The IMF and World Bank can no longer function as instruments that discipline some member countries while deferring to others. Their challenge is to transform the exercise of power among member countries into a framework of mutual respect and cooperation.

This chapter of the Research Handbook of Inflation (2025) reviews the evolution and current relevance of medium-scale New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models, which serve as part of the core analytical framework in central banks and academic macroeconomics. The chapter assesses their capacity to analyse inflation dynamics, monetary transmission mechanisms, and policy interventions.