Overview
Martin Eichenbaum is a macroeconomist at Northwestern University (Department of Economics) and a Research Associate at NBER and the Federal Reserve Bank of Chicago. Co-author of the foundational CEE series on monetary policy shock identification and the CEE DSGE model with nominal rigidities.
Key Contributions
- Recursive identification of monetary policy shocks (CEE 1999): Co-developed the recursiveness assumption, benchmark identification schemes (FF, NBR, NBR/TR), and the identification invariance result; synthesized recursive, non-recursive, and narrative identification approaches. See Monetary Policy Shocks.
- NBR identification (CEE 1992): First proposed non-borrowed reserves as the policy instrument; first systematic documentation of the liquidity effect in a VAR.
- CEE DSGE model (CEE 2005): Co-designed the model with Calvo pricing, wage rigidity, and variable capital utilization calibrated to match benchmark VAR impulse responses.
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