E44

Pierre-Olivier Gourinchas · Walker Ray · Dimitri Vayanos

Layer 1 — Core Argument The paper develops a two-country preferred-habitat model in which currency and bond markets are populated by different investor clienteles — currency traders with price-elastic …

Jess Benhabib · Feng Dong · Pengfei Wang · Zhenyang Xu

Layer 1 — Overview Research Question. Why do corporate defaults cluster in recurring episodes rather than occurring smoothly? The paper asks whether observable fundamental factors — firm …

Bruno Pellegrino · Enrico Spolaore · Romain Wacziarg

Overview Research Question. Why do observed international investment positions and cross-country differences in rates of return to capital fail to conform to a frictionless capital-market benchmark? …

Francesco Giovanardi · Matthias Kaldorf

Layer 1 — Overview Research Question This paper asks two related questions about the intersection of climate policy and bank capital regulation. First, can differentiated bank capital requirements — …

Emil Holst Partsch · Ivan Petrella · Emiliano Santoro

Layer 1 — Overview Research Question Consumer durables account for a disproportionately large share of household expenditure fluctuations despite their small share of total private consumption. Two …

Julien Bengui · Louphou Coulibaly

Layer 1 — Overview Research Question Bengui and Coulibaly ask whether the pattern of capital flows observed during the 2021–2023 global monetary tightening cycle — whereby capital flowed from …

Lee K. Davison · Carlos D. Ramirez

Overview Research question. Does deposit insurance promote financial depth by arresting the outflow of deposits from the banking system during periods of bank distress? The paper tests and quantifies …

Kirstin Hubrich · Yves S. Schüler · Daniel Waggoner

This paper investigates the role of leverage of financial institutions in amplifying the transmission of financial shocks to the macroeconomy, with particular attention to whether that amplification …

EMMANUEL DE VEIRMAN · JASPER DE JONG

Layer 1 — Overview Research Question De Veirman and de Jong develop a new approach to estimating the macroeconomic effects of changes in regulatory loan-to-value (LTV) limits on mortgage loans. The …

Sebastian Doerr · Thomas Drechsel · Donggyu Lee

The paper establishes a causal link from rising top income shares to reduced net job creation at small firms, working through a bank funding channel rooted in non-homothetic household portfolio …

Sergio Villalvazo

Layer 1 — Overview Research Question This paper studies the cross-sectional dimension of Fisher’s (1933) debt-deflation mechanism as it operates during Sudden Stop crises — episodes …

Maximilian Grimm · Òscar Jordà · Moritz Schularick · Alan M. Taylor

This paper provides the first long-run causal evidence that a persistently loose stance of monetary policy — defined as extended periods of low interest rates relative to the neutral rate — …

Fiorella De Fiore · Marie Hoerova · Ciaran Rogers · Harald Uhlig

The paper studies the euro area interbank money markets during the global financial crisis (2007–09) and sovereign debt crisis (2010–15), documenting four empirical regularities and building a …

Árpád Ábrahám · Eva Carceles-Poveda · Yan Liu · Ramon Marimon

Layer 1 — Overview Research Question This paper asks how to optimally design a Financial Stability Fund (Fund) for a union of sovereign countries that must simultaneously (i) prevent sovereign …

Ojasvita Bahl · Chetan Ghate · Debdulal Mallick

Layer 1 — What this paper finds and why it matters Governments in emerging market and developing economies (EMDEs) routinely intervene in agricultural markets — procuring grain and redistributing it …

Jesper Böjeryd · Roine Vestman · Björn Tyrefors · Dany Kessel

This paper estimates a causal housing wealth effect on consumption using a quasi-natural experiment in Stockholm, Sweden. The identification exploits an unanticipated political decision — announced in …

Karlye Dilts Stedman · Andrew Hanson

Layer 1 — Overview Research Question The paper asks why unconventional monetary policy (UMP) spillovers from the European Central Bank (ECB) to the U.S. Treasury yield curve vary so substantially over …