Gauti has worked at the research departments of the International Monetary Fund (2002-2004) and the Federal Reserve Bank of New York (2004-2012). The main focus of Gauti 's work is the analysis of monetary and fiscal policy over the business cycle. His best known work is on the zero lower bound on interest rate policy of central banks in joint work with Michael Woodford. This work is widely cited as the foundation of the so-called forward guidance by several central banks in the world during the financial crisis of 2008. He is also known for theoretical work that formalizes the so-called debt deleveraging cycle, in joint work with Paul Krugman, and for having proposed the paradox of toil and paradox of flexibility in macroeconomics. Recent work of his includes mathematical models that formalize the theory of secular stagnation in a series of papers with various co-authors, most notably Lawrence Summers, that popularized the idea in 2013.
- "Gauti B. Eggertsson". sites.google.com. Retrieved 2017-05-07.
- Eggertsson, Gauti. "Gauti Eggertsson". VoxEU.org. Retrieved 2017-05-08.
- "Speech by Chairman Bernanke on communication and monetary policy". Board of Governors of the Federal Reserve System. Retrieved 2018-07-17.