Dataset E114127 1 <language>en</language> <titleName>Replication data for: Liquidity Traps and Jobless Recoveries</titleName> Stephanie Schmitt-Grohé Martín Uribe 10.3886/E114127V1 2017-01-01 Download en This paper proposes a model that explains the joint occurrence of liquidity traps and jobless growth recoveries. Its key elements are downward nominal wage rigidity, a Taylor-type interest rate feedback rule, the zero lower bound on nominal interest rates, and a confidence shock. Absent a change in policy, the model predicts that low inflation and high unemployment become chronic. With capital accumulation, the model predicts, in addition, an investment slump. The paper identifies a New Fisherian effect, whereby raising the nominal interest rate to its intended target for an extended period of time can boost inflationary expectations and thereby foster employment. Abstract 10.1257/mac.20150220 DOI IsSupplementedBy Text Schmitt-Grohé, Stephanie, and Martín Uribe. “Liquidity Traps and Jobless Recoveries.” American Economic Journal: Macroeconomics 9, no. 1 (January 2017): 165–204. 10.1257/mac.20150220 DOI