Consultant Details

Consultant Patrick Kehoe has been affiliated with the Bank since 1986 and served as a monetary advisor from 1997 to 2013. He is also the Frenzel Professor of International Economics at the University of Minnesota. Patrick received his B.A. in mathematics and Russian from Providence College in 1978 and his Ph.D. in economics from Harvard University in 1986.

Patrick’s work has appeared in numerous prestigious journals, including the American Economic Review, Econometrica, the Journal of Political Economy, and the Review of Economic Studies. He currently serves on several editorial boards and is a Fellow of the Econometric Society.

Throughout his career, Patrick has advised numerous Ph.D. students. He has been awarded several grants, including six from the National Science Foundation. His work focuses on monetary policy, time consistency, and financial crises.

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Reforming the European Monetary Union
May 2017 - Economic Policy Papers

Fiscal Unions Redux
February 2017 - Staff Report
Published In: Economic Theory (64(4), December 2017, pp. 741-776)

Debt Constraints and Employment
September 2016 - Staff Report
Published In: Journal of Political Economy (Vol. 127, No. 4, August 2019, pp. 1926-1991)

Accounting for Business Cycles
September 2016 - Staff Report
Published In: Handbook of Macroeconomics (Volume 2, Chapter 13, 2016, pp. 1013-1063)

Financial Repression: Evidence and Theory
March 2016 - Economic Policy Papers

A Proposal to Eliminate the Distortions Caused by Bailouts
January 2016 - Economic Policy Papers

Bailouts, Time Inconsistency, and Optimal Regulation
April 2013 - Staff Report
Published In: American Economic Review (Vol. 106, No. 9, September 2016, pp. 2458-2493)

Prices Are Sticky After All
July 2012 - Staff Report

Sophisticated Monetary Policies
June 2009 - Staff Report
Published In: Quarterly Journal of Economics (Vol. 125, No. 1, February 2010, pp. 47-89)

Facts and Myths about the Financial Crisis of 2008
October 2008 - Working Paper

Sophisticated Monetary Policies
October 2008 - Working Paper

On the Need for a New Approach to Analyzing Monetary Policy
September 2008 - Staff Report

New Keynesian Models: Not Yet Useful for Policy Analysis
August 2008 - Staff Report
Published In: American Economic Journal: Macroeconomics (Vol. 1, No. 1, January 2009, pp. 242-266)

New Keynesian Models: Not Yet Useful for Policy Analysis
July 2008 - Working Paper

If Exchange Rates Are Random Walks, Then Almost Everything We Say About Monetary Policy Is Wrong
June 2008 - Quarterly Review
Reprinted From: AEA Papers and Proceedings (Vol. 97, May 2007, pp. 339-345)

On the Need for a New Approach to Analyzing Monetary Policy
May 2008 - Working Paper

Temporary Price Changes and the Real Effects of Monetary Policy
May 2008 - Working Paper

Time Inconsistency and Free-Riding in a Monetary Union
April 2008 - Staff Report
Published In: Journal of Money, Credit, and Banking (Vol. 40, No. 7, October 2008, pp. 1329-1355)

Sticky Prices and Sectoral Real Exchange Rates
October 2007 - Working Paper

The Heterogeneous State of Modern Macroeconomics: A Reply to Solow
October 2007 - Staff Report

Reply to Solow
September 2007 - Working Paper

Time-Varying Risk, Interest Rates, and Exchange Rates in General Equilibrium
September 2007 - Staff Report
Published In: Review of Economic Studies (Vol. 76, No. 3, July 2009, pp. 851-878)

On the Optimal Choice of a Monetary Policy Instrument
August 2007 - Staff Report

Modern Macroeconomics in Practice: How Theory is Shaping Monetary Policy
May 2007 - The Region

Modern Macroeconomics in Practice: How Theory is Shaping Monetary Policy
May 2007 - Annual Reports

Are Structural VARs with Long-Run Restrictions Useful in Developing Business Cycle Theory?
May 2007 - Staff Report
Published In: Journal of Monetary Economics (Vol. 55, No. 8, November 2008, pp. 1337-1352)

Sales and the Real Effects of Monetary Policy
April 2007 - Working Paper

If Exchange Rates Are Random Walks Then Almost Everything We Say About Monetary Policy Is Wrong
March 2007 - Working Paper

Comparing Alternative Representations, Methodologies, and Decompositions in Business Cycle Accounting
March 2007 - Staff Report

If Exchange Rates Are Random Walks, Then Almost Everything We Say about Monetary Policy is Wrong
March 2007 - Staff Report
Published In: American Economic Review (Vol. 97, No. 2, May 2007, pp. 339-345)

Business Cycle Accounting
December 2006 - Staff Report
Published In: Econometrica (Vol. 75, No. 3, May 2007, pp. 781-836)

Appendices: Business Cycle Accounting
December 2006 - Staff Report

Comparing Alternative Representations, Methodologies, and Decompositions in Business Cycle Accounting
December 2006 - Working Paper

How to Advance Theory with Structural VARs: Use the Sims-Cogley-Nason Approach
October 2006 - Staff Report

Modern Macroeconomics in Practice: How Theory is Shaping Policy
August 2006 - Staff Report
Published In: Journal of Economic Perspectives (Vol. 20, No. 4, Fall 2006, pp. 3-28)

The Advantage of Transparency in Monetary Policy Instruments
July 2006 - Staff Report

Modeling the Transition to a New Economy: Lessons from Two Technological Revolutions
May 2006 - Staff Report
Published In: American Economic Review (Vol. 97, No. 1, March 2007, pp. 64-88)

Time-Varying Risk, Interest Rates and Exchange Rates in General Equilibrium
October 2005 - Working Paper

A Critique of Structural VARs Using Real Business Cycle Theory
May 2005 - Working Paper

Modeling and Measuring Organization Capital
February 2005 - Staff Report
Published In: Journal of Political Economy (Vol. 113, No. 5, October 2005, pp. 1026-1053)

Sudden Stops and Output Drops
January 2005 - Staff Report
Published In: American Economic Review Papers and Proceedings (Vol. 95, No. 2, May 2005, pp. 381-387)

Patrick Kehoe’s Comment on “Determinants of Business Cycle Comovement: A Robust Analysis” by Marianne Baxter and Michael Kouparitsas
November 2004 - Staff Report
Published In: Journal of Monetary Economics (Vol. 52, No. 1, January 2005, pp. 159-162)

The Optimal Degree of Discretion in Monetary Policy
August 2004 - Staff Report
Published In: Econometrica (Vol. 73, No. 5, September 2005, pp. 1431-1475)

Deflation and Depression: Is There an Empirical Link?
January 2004 - Staff Report
Published In: American Economic Review (Vol. 94, No. 2, May 2004, pp. 99-103)

On the Desirability of Fiscal Constraints in a Monetary Union
November 2003 - Staff Report

Competitive Equilibria With Limited Enforcement
September 2003 - Staff Report
Published In: Journal of Economic Theory (Vol. 119, No. 1, November 2004, pp. 184-206)

Financial Crises as Herds: Overturning the Critiques
April 2003 - Staff Report
Published In: Journal of Economic Theory (Vol. 119, No. 1, November 2004, pp. 128-150)

Accounting for the Great Depression
April 2003 - Quarterly Review
Reprinted From: American Economic Review (Vol. 92, No. 2, May 2002, pp. 22-27)

The Time Consistency of Monetary and Fiscal Policies
April 2003 - Staff Report
Published In: Econometrica (Vol. 72, No. 2, March 2004, pp. 541-567)

Hot Money
March 2003 - Staff Report
Published In: Journal of Political Economy (Vol. 111, No. 6, December 2003, pp. 1262-1292)

Decades Lost and Found: Mexico and Chile Since 1980
December 2002 - Quarterly Review

The Optimal Degree of Discretion in Monetary Policy
November 2002 - Working Paper

Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?
July 2002 - Staff Report
Published In: Review of Economic Studies (Vol. 69, No. 3, August 2002, pp. 533-563)

On the Robustness of Herds
May 2002 - Working Paper

Technical Appendix: Accounting for the Great Depression
May 2002 - Working Paper

Competitive Equilibria with Limited Enforcement
April 2002 - Working Paper

Business Cycle Accounting
April 2002 - Working Paper

The Time Consistency of Monetary and Fiscal Policies
April 2002 - Working Paper

Accounting for the Great Depression
February 2002 - Working Paper
Published In: AER, Papers and Proceedings (Vol. 92, No. 2, May 2002, pp. 22-27)

The advantage of transparent instruments of monetary policy
October 2001 - Working Paper

A Decade Lost and Found: Mexico and Chile in the 1980s
September 2001 - Staff Report
Published In: Review of Economic Dynamics (Vol. 5, No. 1, January 2002, pp. 166-205)

The Transition to a New Economy After the Second Industrial Revolution
July 2001 - Working Paper

Technical Appendix: Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?
July 2001 - Staff Report

On the optimality of transparent monetary policy
April 2001 - Working Paper

Paths of Development for Early- and Late-Bloomers in a Dynamic Heckscher-Ohlin Model
September 2000 - Staff Report

Money, Interest Rates, and Exchange Rates With Endogenously Segmented Asset Markets
August 2000 - Working Paper

Money, Interest Rates, and Exchange Rates With Endogenously Segmented Asset Markets
August 2000 - Staff Report
Published In: Journal of Political Economy (Vol. 110, No. 1, February 2002, pp. 73-112)

Financial Crises as Herds
March 2000 - Working Paper

International Business Cycles With Endogenous Incomplete Markets
March 2000 - Staff Report
Published In: Econometrica (Vol. 70, No. 3, May 2002, pp. 907-928)

Taxing Capital Income: A Bad Idea
July 1999 - Quarterly Review

Money and Interest Rates With Endogenously Segmented Markets
April 1999 - Staff Report

Asking the Right Questions About the IMF
January 1999 - Annual Reports

Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates? (December 1998 Version)
December 1998 - Staff Report

On the Need for Fiscal Constraints in a Monetary Union
August 1998 - Working Paper
Published In: Journal of Monetary Economics (Vol. 54, No. 8, November 2007, pp. 2399-2408)

Optimal Fiscal and Monetary Policy
July 1998 - Staff Report
Published In: Handbooks in Economics (Vol. 1C, 1999, pp. 1671-1745)

Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?
May 1998 - Staff Report
Published In: Econometrica (Vol. 68, No. 5, September 2000, pp. 1151-79)

Reviving Reputation Models of International Debt
December 1997 - Quarterly Review

The Poverty of Nations: A Quantitative Investigation
October 1997 - Staff Report

Models of Sovereign Debt: Partial vs. General Reputations
March 1997 - Working Paper
Published In: International Economic Review (Vol. 39, No. 1, February 1998, pp. 55-70)

Models of Energy Use: Putty-Putty vs. Putty-Clay
March 1997 - Staff Report
Published In: American Economic Review (Vol. 89, No. 4, September 1999, pp. 1028-43)

Technical Appendix to “Optimal Fiscal Policy in a Business Cycle Model”
August 1996 - Working Paper

Reputation Spillover Across Relationships: Reviving Reputation Models of Debt
March 1996 - Staff Report

Industry Evolution and Transition: Measuring Investment in Organization Capital
November 1995 - Staff Report

Social Insurance and Transition
November 1995 - Staff Report
Published In: International Economic Review (Vol. 37, No. 2, May 1996, pp. 377-401)

Social Insurance and Transition
April 1995 - Working Paper

Putty-Clay Capital and Energy
April 1995 - Working Paper

Optimal Social Insurance, Incentives, and Transition
March 1995 - Working Paper

The Role of Institutions in Reputation Models of Sovereign Debt
August 1994 - Staff Report
Published In: Journal of Monetary Economics (Vol. 35, No. 1, February 1995, pp. 45-64)

A Primer on Static Applied General Equilibrium Models
April 1994 - Quarterly Review
Published In: Modeling North America's economic integration (1995, pp. 1-31)

Capturing NAFTA's Impact With Applied General Equilibrium Models
April 1994 - Quarterly Review
Published In: Modeling North America's economic integration (1995, pp. 33-57)

International Business Cycles: Theory vs. Evidence
September 1993 - Quarterly Review
Published In: Frontiers of business cycle research (1995, pp. 331-356)

Industry Evolution and Transition: The Role of Information Capital
August 1993 - Staff Report

Optimal Fiscal Policy in a Business Cycle Model
July 1993 - Staff Report
Published In: Journal of Political Economy (Vol. 102, No. 4, August 1994, pp. 617-652)

Optimality of the Friedman Rule in Economies With Distorting Taxes
July 1993 - Staff Report
Published In: Journal of Monetary Economics (Vol. 37, No. 2, April 1996, pp. 203-223)

In Search of Scale Effects in Trade and Growth
July 1992 - Staff Report
Published In: Journal of Economic Theory (Vol. 58, No. 2, December 1992, pp. 377-409)

Dynamics of the Trade Balance and the Terms of Trade: The J-Curve Revisited
May 1992 - Discussion Paper
Published In: American Economic Review (Vol. 84, No. 1, March 1994, pp. 84-103)

International Evidence on the Historical Properties of Business Cycles
November 1991 - Staff Report
Published In: American Economic Review (Vol 82, Num 4, September 1992, pp. 864-888)

International Real Business Cycles
November 1991 - Staff Report
Published In: Journal of Political Economy (Vol 100, Num 4, August 1992, pp. 745-775)
Published In: Open Economy Macroeconomics (Vol. 2, 2006, pp. 154-184)

Optimal Fiscal and Monetary Policy: Some Recent Results
November 1991 - Staff Report
Published In: Journal of Money, Credit, and Banking (Vol 23, Num 3, August 1991 (part 2), pp. 519-539)
Published In: Political economy, growth, and business cycles (1992, pp. 283-305)

International Real Business Cycles
October 1991 - Working Paper

Reputation With Multiple Relationships: Revising Reputation Models of Debt
March 1991 - Staff Report

Technical Appendix to Optimal Fiscal Policy in a Stochastic Growth Model
January 1991 - Working Paper

Sustainable Plans and Debt
November 1989 - Staff Report
Published In: Journal of Economic Theory (Vol 61, No. 2, December 1993, pp. 230-261)
Published In: The legacy of Robert Lucas, Jr. (Vol. 3, 1999, pp. 325-356)

Sustainable Plans and Mutual Default
October 1989 - Staff Report
Published In: Review of Economic Studies (Vol. 60, No. 1, January 1993, pp. 175-195)

Sustainable Plans
June 1989 - Staff Report
Published In: Journal of Political Economy (Vol 98, Num 4, 1990, pp. 783-802)
Published In: Monetary and fiscal policy (Vol. 1, 1994, pp. 143-163)

International Coordination of Fiscal Policy in Limiting Economies
May 1989 - Staff Report
Published In: Journal of Political Economy (Vol 98, Num 3, June 1990, pp. 617-636)

On the Denomination of Government Debt: A Critique of the Portfolio Balance Approach
November 1988 - Staff Report
Published In: Journal of Monetary Economics (Vol. 23, No. 3, May 1989, pp. 359-376)

Time Consistency and Policy
August 1988 - Staff Report
Published In: Modern Business Cycle Theory (1989, pp. 265-305)

Coordination of Fiscal Policies in a World Economy
August 1986 - Staff Report
Published In: Journal of Monetary Economics (Vol 19, No. 3, May 1987, pp. 349-376)

International Policy Cooperation May Be Undesirable
February 1986 - Staff Report
Published In: Review of Economic Studies (Vol 56, 1989, pp. 289-296)

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