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What's new in Economics?
Optimal Monetary Policy with Uncertain Fundamentals and Dispersed Information  
Author(s):  Guido Lorenzoni  
Abstract:
This paper studies monetary policy in an economy where output fluctuations are driven by the private sector's uncertainty about the economy's fundamentals. I consider an economy where information on aggregate productivity is dispersed across agents and there are two aggregate shocks: a standard productivity shock and a \noise shock" affecting public beliefs about aggregate productivity. Nei...
 
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In the Spotlight
Prof. Masood Karshenas
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Prof. Masood Karshenas
Dr. Massoud Karshenas is Professor of Economics at the University of London. He is also a Fellow of the Economic Research Forum for Arab Countries, Turkey and Iran (ERF). His research interests include, political economy of the Middle East, poverty and environment in Least Developed Countries, economics of technological change, and intersectoral resource flows.   His publications inc...
 
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Editorial and Opinion
Djavad Salehi-Isfahani
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The tale of two professions
Author(s): Djavad Salehi-Isfahani
Position: Professor of Economics at Virginia Tech
October 1851, when Darolfonoon opened its doors to its first class of medical students, is as good a date as any to mark the beginning of the successful diffusion of modern medicine in Iran. Over the next hundred years, ordinary Iranians replaced their faith in healers with doctors and abandoned folk for modern medicine. Thus Iranians pa...
 
Classic Papers in Economics
Effciency and Equality in a Simple Model of Unemployment Insurance  
Author(s):  Andrew Atkeson, Robert E. Lucas, Jr.  
Abstract:
This paper describes the efficient allocation of consumption and work effort in an economy in which workers face idiosyncratic employment risk and considerations of moral hazard prevent full insurance. We impose a lower bound on the expected discounted utility that can be assigned to any agent from any date onward, and show, with this feature added, that the efficient unemployment insurance schem...
 
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Understanding the Process of Economic Change
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