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Gita Gopinath · Jeremy C Stein

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 …

Wenxin Du · Jesse Schreger

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 …

Hengjie Ai · Ravi Bansal · Hongye Guo · Amir Yaron

This paper develops a revealed-preference theory that uses asset-market data to identify whether investors have a preference for early resolution of uncertainty (PER), a property of non-expected …

Emanuele Colonnelli · Valdemar Pinho Neto · Edoardo Teso

Do individual political views shape firm behavior and labor market outcomes in the private sector? Specifically, do business owners sort copartisan workers into their firms, and does employers' …

Antonio Coppola · Matteo Maggiori · Brent Neiman · Jesse Schreger

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; …

SeHyoun Ahn · Greg Kaplan · Benjamin Moll · Thomas Winberry · Christian Wolf

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 …

Greg Buchak · Gregor Matvos · Tomasz Piskorski · Amit Seru

This paper examines frictions in dealer intermediation in durable consumer goods markets, using iBuyers — technology-driven real estate companies such as Opendoor and Offerpad — as a lens. The central …