Publications

Cash-flow Tranching and the Macroeconomy

The volume of cash-flow transformation activities has grown markedly over the past few decades as a result of technological …

Security Creation Costs and Economic Development

We describe a tractable general equilibrium environment in which producers can transform cash-flows at a cost to create securities that …

Monetary Shocks and Sticky Wages in the U.S. Great Contraction: A Multi-Sector Approach

We quantify the role of contractionary monetary shocks and nominal wage rigidities in the U.S. Great Contraction. In contrast to …

Monetary Policy and Inequality

This Commentary examines the link between monetary policy and income and wealth inequality by reviewing the theoretical channels that …

The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries

We show that the inability of a standardly calibrated labor search-and-matching model to account for observed levels of labor market …

Reassessing the Effects of Extending Unemployment Insurance Benefits

To deal with the high level of unemployment during the Great Recession, lawmakers extended the availability of unemployment benefits …

The Cyclicality of the Portuguese Labour Market: a Macroeconomic Perspective in the OECD Context

The portuguese labour market's cyclical fluctuations show little correlation with the aggregate business cycle as given by fluctuations …

Monetary Policy Tightening and Long-Term Interest Rates

The Federal Open Market Committee (FOMC) has maintained an accommodative monetary policy ever since the 2007 recession, and some fi …

Technology Shocks and Unemployment in the Last Recession

In the latest recession, unemployment rates in the United States increased at a faster pace than in the average OECD country. Since the …

Limited Enforcement, Financial Intermediation, and Economic Development: A Quantitative Assessment

We present a model of economic development where the importance of financial differences caused by limited enforcement can be measured. …

Is U.S. Federal Debt Too Large?

U.S. federal debt has grown to levels that have not been seen since the aftermath of the Second World War. Many economists argue there …

A Competitive Model of the Informal Sector

In developing nations, formal workers tend to be more experienced, more educated, and earn more than informal workers. These facts are …

The Great Depression in Canada and the United States: A Neoclassical Perspective

Canada suffered a major depression from 1929 to 1939. In terms of output it was similar to the Great Depression in the United States. …