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Cristina Arellano

Monetary Advisor, Assistant Director of Policy · Federal Reserve Bank of Minneapolis

Monetary advisor and assistant director of policy at the Federal Reserve Bank of Minneapolis, where she has worked since 2009. Her research covers international macroeconomics, sovereign debt and financial crises. Named a Fellow of the Econometric Society in 2024.

2 papers tracked 1 classics ⌁ Follow this author

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Published Classic American Economic Review Published May 2008

Default Risk and Income Fluctuations in Emerging Economies

Cristina Arellano

In a small open economy where a risk-averse government borrows from risk-neutral lenders using only non-contingent one-period bonds, default happens in equilibrium and happens in *recessions* -- the …

Sovereign Debt International Finance Open Economy Macro Business Cycles Risk Premia

Published Quarterly Journal of Economics Online 23 Feb 2026 Published Apr 2026

Monetary Policy and Sovereign Risk in Emerging Economies (NK-Default)

Cristina Arellano · Yan Bai · Gabriel Mihalache

This paper develops a New Keynesian small open economy model with endogenous sovereign default — the NK-Default framework — and uses it to study the interplay between monetary policy and sovereign …

Monetary Policy Rules Financial Stability