This article quantifies the stimulative effect of central bank forward guidance—the public
announcement of the intended path for monetary policy in the future—when the nominal
interest rate is stuck at its zero lower bound (ZLB).
This paper deals with a classic development question: how can the process of economic
development – transition from stagnation in a traditional technology to industrialization
and prosperity with a modern technology – be accelerated?
This paper provides a general framework for the quantitative analysis of
stochastic dynamic models. We review convergence properties of some
numerical algorithms and available methods to bound approximation errors.
The two channels of default on unsecured consumer debt are (i) bankruptcy, which
legally grants partial or complete removal of unsecured debt under certain circumstances,
and (ii) delinquency, which is informal default via nonpayment.