Professor Gauti Eggertsson’s work featured as one of five economists that established the “Princeton school of monetary economics” in the early 2000s, which had a major impact on how the Federal Reserve responded to the financial crisis in 2008.

Eggertsson's work is featured along with the work of former Fed Chairman Ben Bernanke, Nobel Laurate of Economics Paul Krugman, Lars E.O. Svensson former deputy governor of Sweden’s central bank, and  Michael Woodford, who is by many considered the leading monetary theorist today. While Professor Eggertsson was a student at Princeton at the time, the other four  were faculty members. According to the article, the work done by the five economists provided the conceptual framework that guided monetary policy action in response to the 2008 crisis, and ever since, for example, it has shaped the view of th fiscal policy response  during the COVID pandemic. More information can be found in the articles and podcast linked below. 

How the Princeton School Shaped US Policy in the 21st Century by Julius Probst, PhD

The Princeton School and the Zero Lower Bound by Scott Sumner

Podcast by Scott Sumner on the Princeton School of Macroeconomics and Overcoming Inflationary Fears