This paper identifies and quantifies a housing portfolio channel of quantitative easing (QE) transmission that operates through household portfolio rebalancing toward second homes (as opposed to the …
PublishedClassicQuarterly Journal of EconomicsOnline 27 Oct 2020Published Mar 2021
A currency's role as the unit of account in which trade is invoiced and its role as a safe store of value reinforce each other, because households who buy dollar-priced imports want dollar-denominated …
PublishedQuarterly Journal of EconomicsOnline 19 Jun 2025Published Oct 2025
The paper asks how firm-level, sector-level, and aggregate markups comove with output at different levels of aggregation, and whether a single structural model can reconcile seemingly contradictory …
PublishedClassicHandbook of International EconomicsPublished Jan 2022
A Handbook chapter reviewing the breakdown of covered interest rate parity during the Global Financial Crisis and its persistence through the following decade -- how the cross-currency basis is …
Because most trade is invoiced in a few dominant currencies rather than in the producer's or the destination's currency, it is the dollar exchange rate and not the bilateral one that drives import …
This paper derives a generalized Euler relation for aggregate consumption in incomplete-markets economies with idiosyncratic income risk, and shows that under specific benchmark conditions -- zero …
PublishedClassicReview of Economic StudiesOnline 12 Oct 2021Published Mar 2022
Using the universe of Turkish corporate credit transactions matched to bank balance sheets over 2003-13, this paper shows that an easing of global financial conditions lowers domestic borrowing costs …
Working with a continuous-time New Keynesian model, this paper shows that discretionary monetary policy during a liquidity trap produces deflation and depression that get worse, not better, as prices …
PublishedClassicJournal of Economic PerspectivesPublished Aug 2018
This essay argues that the Great Recession exposed how badly representative-agent models capture household consumption behavior, and outlines the emerging Heterogeneous Agent New Keynesian (HANK) …
PublishedClassicQuarterly Journal of EconomicsOnline 3 May 2021Published Jun 2021
Because global firms raise capital through subsidiaries incorporated in tax havens, official residency-based statistics attribute those securities to the haven rather than to the parent's country; …
The paper addresses two questions about government debt rollover. First, a positive question: what is the maximum ratio of government bonds to capital that can be sustained forever without any primary …
PublishedAmerican Economic ReviewPublished Mar 2026
This paper measures and models the role of temporary layoffs (TL) in cyclical unemployment dynamics, motivating the analysis by the extraordinary surge in temporary layoffs at the onset of the …
This paper develops a continuous-time method for solving heterogeneous-agent models with aggregate shocks by linearizing around a nonlinearly computed stationary equilibrium (extending Reiter's …