Michael Woodford
John
Bates Clark Professor of Political Economy
Department of Economics,
Phone: 212-854-1094 Fax: 212-854-8059
e-mail: michael.woodford@columbia.edu
Office: 1009B International Affairs Building
- Biographical
§ Short Biography (MS Word file)
§ Curriculum Vitae [September 2009 (pdf file)]
§ Interview with Michael Parkin, May 2002. [Published in Parkin, Economics, 6th edition, Addison-Wesley, 2002. (MS Word file)]
§ Interview with
Philipp Harms, August 2004. [Published in
§ Research Summary: “Rules for Monetary Policy,” January 2006. [Published in NBER Reporter, Spring 2006.]
§ Deutsche Bank Prize in Financial Economics
- For General Readers
§ "Revolution and
Evolution in Twentieth-Century Macroeconomics," June 1999. (pdf format) [Presented at a conference, Frontiers
of the Mind in the Twenty-First Century, U.S. Library of Congress,
§ "Monetary Policy in a World Without Money," revised August 2000. (MS Word format) [Note: file must be printed on a Postscript printer in order for all figures to be visible.] [Published in: International Finance 3: 229-260 (2000).]
§ "Financial Market Efficiency and the Effectiveness of Monetary Policy," remarks at the symposium on "Financial Innovation and Monetary Transmission," Federal Reserve Bank of New York, April 5-6, 2001. Revised March 2002. (pdf format)
§ “The Return of Monetary Rules,” chapter 1 from Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press, 2003. (pdf format)
§ “Central-Bank Communication and Stabilization Policy,” published in German translation in Frankfurter Allgemeine Zeitung, September 29, 2007. (MS Word format)
§ “The Case for Forecast Targeting as a Monetary Policy Strategy,” Journal of Economic Perspectives, Fall 2007.
§ “The Fed’s
‘Enhanced’ Communication Strategy: Work in Progress,” remarks delivered at
the NABE session on Monetary Policy Transparency and Communications, ASSA
meetings,
§ “Convergence in Macroeconomics: Elements of the New Synthesis,” remarks for a panel discussion at the AEA meeting, January 2008.
§ “Principles
and Public Policy Decisions: The Case of Monetary Policy,” presented at the
Law, Economics and Organization Workshop,
- Selected Research – Recent
- Financial Disruptions and Macroeconomic Stabilization
§ "The Zero Interest-Rate Bound and Optimal Monetary Policy," with Gauti B. Eggertsson, revised June 2003. (pdf format) [Presented at the Brookings Panel on Economic Activity, March 2003.]
§ "Optimal Monetary and Fiscal Policy in a Liquidity Trap," with Gauti B. Eggertsson, July 2004. (pdf format) [Published in NBER International Seminar on Macroeconomics 2004.]
§ “Credit Frictions and Optimal Monetary Policy,” with Vasco Curdia, revised August 2009. (pdf format) Revised draft of paper prepared for the BIS annual conference, “Whither Monetary Policy?” Lucerne, Switzerland, June 26-27, 2008. [Technical appendix.]
§ “Credit Spreads and Monetary Policy,” with Vasco Curdia, revised August 2009. (pdf format) Revised draft of paper prepared for conference on “Financial Markets and Monetary Policy,” Federal Reserve Board, June 4-5, 2009. [Appendix.]
§ “Conventional and Unconventional Monetary Policy,” with Vasco Curdia, September 2009. (pdf format) Paper prepared for conference “Debt, Financial Markets and Monetary Policy,” Federal Reserve Bank of St. Louis, October 15-16, 2009.
§ “Simple Analytics of the Government Expenditure Multiplier,” January 2010. (pdf format)
- Imperfectly Competitive Models of Pricing
§ “Imperfect Common Knowledge
and the Effects of Monetary Policy,” October 2001. (pdf format) [Published in P. Aghion, R.
Frydman, J. Stiglitz, and M. Woodford, eds., Knowledge, Information, and
Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps,
§ “Firm-Specific Capital and the New-Keynesian Phillips Curve,” January 2005. (pdf format) [Published in: International Journal of Central Banking 1(2): 1-46 (2005).]
§ “Interpreting Inflation Persistence,” January 2006. (pdf format) Comments on the conference on ‘Quantitative Evidence on Price Determination,’ held at the Federal Reserve Board, September 2005. [Published in Journal of Money, Credit and Banking.]
§ “Information-Constrained State-Dependent Pricing,” April 2008, revised June 2009. (pdf format)
- Optimal Monetary Policy
§ “Optimal Monetary Policy Inertia,” August 1999. (pdf format) [Also available as NBER working paper no. 7261.]
§ “Optimal Interest-Rate Smoothing,” revised June 2003. (pdf format) [Revised excerpt from “Optimal Monetary Policy Inertia,” published in Review of Economic Studies 70: 861-886 (2003).]
§ “Commentary: How Should Monetary
Policy Be Conducted in an Era of Price Stability?” September 1999. (pdf format) [Published in: Federal Reserve
Bank of
§ “Pitfalls of Forward-Looking Monetary Policy,” January 2000. (MS Word format) [Published in: American Economic Review 90(2): 100-104 (2000).]
§ “The Taylor Rule and Optimal Monetary Policy,” January 2001. (pdf format) [Shorter version published in: American Economic Review 91(2): 232-237 (2001).]
§ “Optimal Interest-Rate Rules: I. General Theory,” with Marc P. Giannoni, revised December 2002. (pdf format) [Also available as NBER working paper no. 9419.]
§ “Optimal Interest-Rate Rules: II. Applications,” with Marc P. Giannoni, revised December 2002. (pdf format) [Also available as NBER working paper no. 9420.]
§ “Optimal Target Criteria for Stabilization Policy,” with Marc P. Giannoni, preliminary draft, October 2009. (pdf format)
§ “Optimal Monetary Stabilization Policy,” in preparation for B.M. Friedman and M. Woodford, eds., Handbook of Monetary Economics, vol. 3. Preliminary draft, October 2009. (pdf format)
- Linear-Quadratic Approximation of Optimal Policy Problems
§ “Inflation Stabilization and Welfare,” Contributions to Macroeconomics, vol. 2, issue 1, article 1 (2002). [A substantially extended version of this can be found as chapter 6 of Interest and Prices.]
§ “Inflation Stabilization and Welfare: The Case of a Distorted Steady State,” with Pierpaolo Benigno, revised February 2005. (pdf format) [Published in: Journal of the European Economics Association 3: 1185-1236 (2005). May 2004 draft presented at ESSIM 2004 contains generalizations that have been omitted in later drafts.]
§ “Optimal Stabilization Policy when Wages and Prices are Sticky: The Case of a Distorted Steady State,” with Pierpaolo Benigno, revised July 2004. (pdf format) [Also available as NBER working paper no. 10839.]
§ “Optimal Taxation in an RBC Model: A Linear-Quadratic Approach,” with Pierpaolo Benigno, revised December 2005. (pdf format) [Published in: Journal of Economic Dynamics and Control 30: 1445-1489 (2006).]
§ “Linear-Quadratic Approximation of Optimal Policy Problems,” with Pierpaolo Benigno, revised August 2008. (pdf format)
- Inflation Targeting
§ "Implementing
Optimal Policy through Inflation-Forecast Targeting," with Lars E.O.
Svensson, November 1999, revised April 2003. (pdf
format) [Published in: B.S. Bernanke and M. Woodford, eds., Inflation
Targeting,
§ "Optimal Inflation
Targeting Rules," with Marc P. Giannoni, revised August 2003. (pdf format) [Published in: B.S. Bernanke and M.
Woodford, eds., Inflation Targeting,
§ "Inflation Targeting
and Optimal Monetary Policy," October 2003. (pdf format) [Presented at the Annual Policy Conference,
Federal Reserve Bank of
§ “The Case for Forecast Targeting as a Monetary Policy Strategy,” Journal of Economic Perspectives, Fall 2007.
§ “Forecast Targeting as
a Monetary Policy Strategy: Policy Rules in Practice,” December 2007. (pdf format) [Revision of paper presented at the conference
“John Taylor’s Contributions to Monetary Theory and Policy,” Federal Reserve
Bank of
§ “Optimal Target Criteria for Stabilization Policy,” with Marc P. Giannoni, preliminary draft, October 2009. (pdf format)
- Optimal Policy under Uncertainty
§ "Indicator Variables for Optimal Policy," with Lars E.O. Svensson, revised January 2002. (pdf format) [Published in: Journal of Monetary Economics 50: 691-720 (2003).]
§ "Indicator Variables for Optimal Policy under Asymmetric Information," with Lars E.O. Svensson, revised August 2002. (pdf format) [Earlier draft available as NBER working paper no. 8255.][Published in: Journal of Economic Dynamics and Control.]
§ "Optimal Policy with Partial Information in a Forward-Looking Model: Certainty-Equivalence Redux," with Lars E.O. Svensson, June 2002. (pdf format)
§ “Robustly Optimal Monetary Policy with Near-Rational Expectations,” revised August 2009. (pdf format) [Additional material in December 2005 draft.]
- Deflation and Liquidity Traps
§ "The Zero Interest-Rate Bound and Optimal Monetary Policy," with Gauti B. Eggertsson, revised June 2003. (pdf format) [Presented at the Brookings Panel on Economic Activity, March 2003.]
§ "Optimal Monetary
Policy in a Liquidity Trap," with Gauti B. Eggertsson, September 2003.
[Also available as NBER w.p. no. 9968. Updated version of Brookings paper, with
additional discussion of
§ "Optimal Monetary and Fiscal Policy in a Liquidity Trap," with Gauti B. Eggertsson, July 2004. (pdf format) [Published in NBER International Seminar on Macroeconomics 2004.]
§ “Comment on ‘Using a Long-Term Interest Rate as the Instrument of Monetary Policy’,” April 2005. (pdf format) [Published in: Journal of Monetary Economics 52: 881-887 (2005).]
- Central-Bank Communication Policy
§ “Central-Bank
Communication and Policy Effectiveness,” revised September 2005. (pdf file) [Publication
draft of paper presented at FRB Kansas City Symposium on “The Greenspan Era:
Lessons for the Future,”
§ “The Fed’s
‘Enhanced’ Communication Strategy: Work in Progress,” remarks delivered at
the NABE session on Monetary Policy Transparency and Communications, ASSA
meetings,
- Financial Structure and Inflation Control
§ "Doing without Money: Controlling Inflation in a Post-Monetary World," Review of Economic Dynamics 1: 173-219 (1998). [ August 1997 draft. (pdf format) Published version available at www.idealibrary.com]
§ "Monetary Policy in a World Without Money," revised August 2000. (MS Word format) [Note: file must be printed on a Postscript printer in order for all figures to be visible.] [Published in: International Finance 3: 229-260 (2000).]
§ "Monetary Policy in the Information Economy," revised September 2001. (pdf format) Paper presented at the 2001 Jackson Hole Symposium, August 30 - September 1, 2001. [For data, see below.]
§ "Financial Market Efficiency and the Effectiveness of Monetary Policy," remarks at the symposium on "Financial Innovation and Monetary Transmission," Federal Reserve Bank of New York, April 5-6, 2001. Revised March 2002. (pdf format)
§ “How Important is Money in the
Conduct of Monetary Policy?” Revised July 2007. (pdf format) Paper
presented at the Conference in Honor of Ernst Baltensperger,
§ “Does a ‘Two-Pillar Phillips Curve’ Justify a Two-Pillar Monetary Policy Strategy?” March 2007. (pdf format)
§ “Credit Frictions and Optimal Monetary Policy,” with Vasco Curdia, revised August 2009. (pdf format) Revised draft of paper prepared for the BIS annual conference, “Whither Monetary Policy?” Lucerne, Switzerland, June 26-27, 2008. [Technical appendix.]
- Fiscal Policy and Inflation
§ "Public Debt and the Price Level," June 1998. (pdf format)
§ "Fiscal Requirements for Price Stability," October 2000. (pdf format) [Published in: Journal of Money, Credit and Banking 33: 669-728 (2001).]
§ "Optimal Monetary and Fiscal Policy: A Linear-Quadratic Approach," with Pierpaolo Benigno, revised July 2003. (pdf format) [Published in: NBER Macroeconomics Annual 2003]
§ “Optimal Inflation Targeting under Alternative Fiscal Regimes,” with Pierpaolo Benigno, revised January 2006. (pdf format) Revision of paper presented at the Ninth Annual Conference of the Central Bank of Chile, October 21-22, 2005.
- Open-Economy Issues in Monetary Policy
§ “Globalization and Monetary Control,” revised July 2007. (pdf format) [Published in: J. Gali and M. Gertler, eds., International Dimensions of Monetary Policy, U. of Chicago Press, forthcoming.]
§ “Is an Undervalued Currency the Key to Economic Growth?” January 2009. (pdf format) Comment on Dani Rodrik, “The Real Exchange Rate and Economic Growth,” Brookings Papers on Economic Activity, 2008. [Shorter version published in BPEA.]
- Books
- Interest and
Prices: Foundations of a Theory of Monetary Policy,
§ Errata: file last updated Febuary 3, 2008. [Readers are encouraged to submit additional corrections at the e-mail address at top of this page.] Certain equations in chapter 5, section 3 of the book are corrected in the paper: "Inflation and Output Dynamics with Firm-Specific Investment," May 2004. [Part of this paper has been revised as “Firm-Specific Capital and the New-Keynesian Phillips Curve,” above.]
§ Symposium on Interest and Prices, at the annual
meeting of the History of Economics Society,
- Old Papers -- Hard to Find
§ "Indeterminacy of Equilibrium in the Overlapping Generations Model: A Survey," May 1984. [Scanned typescript. (pdf format) ]
§ "Stationary Sunspot Equilibria: The Case of Small Fluctuations around a Deterministic Steady State," September 1986. [Scanned typescript. (pdf format) ]
§ "Aggregate Fluctuations from Independent Sectoral Shocks: Self-Organized Criticality in a Model of Production and Inventory Dynamics," Ricerche Economiche 47: 3-30 (1993). With P. Bak, K. Chen, and J. Scheinkman. [November 1992 draft.(pdf format)]
§ "Real Effects of Monetary Shocks in an Economy with Sequential Purchases," with Robert E. Lucas, Jr., revised April 1994. [Substantial revision relative to earlier NBER working paper. Scanned typescript. (pdf format)]
§ "Notes on Dynamic Efficiency Wage Models," August 1994. [Scanned typescript. (pdf format) ]
- Data and Programs
- Programs and data used to produce figures in Giannoni and Woodford, “Optimal Inflation Targeting Rules” (Matlab m-files)
- Programs and data used to produce figures in Interest and Prices, chapter 8. (Matlab m-files)