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Conference Paper
Financial structure and aggregate economic activity: an overview
Working Paper
A Macroeconomic Model with Financial Panics
This paper incorporates banks and banking panics within a conventional macroeconomic framework to analyze the dynamics of a financial crisis of the kind recently experienced. We are particularly interested in characterizing the sudden and discrete nature of the banking panics as well as the circumstances that makes an economy vulnerable to such panics in some instances but not in others. Having a conventional macroeconomic model allows us to study the channels by which the crisis affects real activity and the effects of policies in containing crises.
Conference Paper
Commentary: financial crises and economic activity
Conference Paper
Are banks dead? or, are the reports greatly exaggerated?
Working Paper
Current account dynamics and monetary policy
We explore the implications of current account adjustment for monetary policy within a simple two country SGE model. Our framework nests Obstfeld and Rogoff's (2005) static model of exchange rate responsiveness to current account reversals. It extends this approach by endogenizing the dynamic adjustment path and by incorporating production and nominal price rigidities in order to study the role of monetary policy. We consider two different adjustment scenarios. The first is a "slow burn" where the adjustment of the current account deficit of the home country is smooth and slow. The second ...
Conference Paper
Agency costs, collateral, and business fluctuations
Conference Paper
Developing country borrowing and domestic wealth