Journal Article
Understanding the fiscal theory of the price level
Fitzgerald, Terry J.; Christiano, Lawrence J. (2000-04)
Price stability is an important goal of public policy. To reach this goal, two key questions must be addressed: How can price stability be achieved? And, how much price stability is desirable? The authors review the fiscal theory of the price level, with special emphasis on its implications for the feasibility and desirability of price stability.
Economic Review , Issue Q II , Pages 2-38

Discussion Paper
Is there a stable Phillips Curve after all?
Fitzgerald, Terry J.; Nicolini, Juan Pablo; Holtemeyer, Brian (2013)
The Phillips curve refers to a negative (or inverse) relationship between unemployment and inflation in an economy?when unemployment is high, inflation tends to be low, and vice versa. This inflation-unemployment link has been observed in many countries during many times, most famously by William Phillips in 1958 looking at historical data for the United Kingdom. If this relationship is stable (or ?structural?)?meaning that it holds regardless of changes in the economic environment, including policy adjustment?then policymakers might be able to trade off increases in inflation to achieve ...
Economic Policy Paper , Paper 13-6

Report
Banking in computable general equilibrium economies
Fitzgerald, Terry J.; Prescott, Edward C.; Diaz-Gimenez, Javier; Alvarez, Fernando (1992)
In this paper we develop a computable general equilibrium economy that models the banking sector explicitly. Banks intermediate between households and between the household sector and the government sector. Households borrow from banks to finance their purchases of houses and they lend to banks to save for retirement. Banks pool households? savings and they purchase interest-bearing government debt and non-interest bearing reserves. We use this structure to answer two sets of questions: one normative in nature that evaluates the welfare costs of alternative monetary and tax policies, and one ...
Staff Report , Paper 153

Journal Article
An introduction to the search theory of unemployment
Fitzgerald, Terry J. (1998-07)
The author presents a model of job search that focuses on an unemployed person's decision to accept an offered job or to continue looking for a new one.
Economic Review , Volume 34 , Issue Q III , Pages 2-15

Journal Article
Helicopter churn: the macro view on job loss and growth
Fitzgerald, Terry J.; Holland, Mark (2005-11)
Lots of counties experience major job loss, but why they do and how well they recover is more of a mystery.
Fedgazette , Volume 17 , Issue Nov , Pages 3

Journal Article
Money growth and inflation: how long is the long run?
Fitzgerald, Terry J. (1999-08)
In their efforts to maintain low inflation, policymakers pay little attention to the growth rate of the money supply. Yet many studies have found that money growth and inflation a closely related, at least in the long run. But how long must money growth remain strong before it begins to concern policymakers? That is, what is the shortest period over which money growth seems to be reliably associated with inflation?
Economic Commentary , Issue Aug

Working Paper
Is There a Stable Relationship between Unemployment and Future Inflation? Evidence from U.S. Cities
Fitzgerald, Terry J.; Nicolini, Juan Pablo (2014-05-30)
This paper makes two straightforward points that we argue are central to understanding the literature and debate surrounding the stability of the Phillips curve. First, the endogeneity of monetary policy implies that aggregate data are largely uninformative as to the existence of a stable relationship between unemployment and future inflation. Second, if the NAIRU model is assumed to be true, regional data can be used to identify the structural relationship between unemployment and future inflation. We find that a 1 percentage point increase in the unemployment rate is associated with a ...
Working Papers , Paper 713

Journal Article
Reducing working hours: American workers' salvation?
Fitzgerald, Terry J. (1996-09)
An examination of the basic rationale behind policies intended to reduce the standard workweek, and an explanation of why these policies are likely to be less effective at boosting employment than proponents claim.
Economic Commentary , Issue Sep

Working Paper
Reducing working hours: a general equilibrium analysis
Fitzgerald, Terry J. (1998)
An examination of the effects of restricting the weekly hours of workers in a heterogeneous-agent, general-equilibrium framework. The main findings are that restricting weekly hours increases employment substantially, but may also lead to large declines in wages, productivity, output, and consumption, and can increase the wage disparity between skilled and unskilled workers.
Working Papers (Old Series) , Paper 9801

Journal Article
Okun's law revisited: should we worry about low unemployment?
Altig, David E.; Rupert, Peter; Fitzgerald, Terry J. (1997-05)
A review of the connection between labor resource utilization and the growth/unemployment correlation summarized by Okun's law, showing that the instability of that relationship, particularly over short time horizons, has important implications for monetary policy.
Economic Commentary , Issue May