Working Papers

Fiscal Policy and the Monetary Transmission Mechanism

I study the role of fiscal policy in the monetary transmission mechanism. When monetary policy has fiscal consequences, monetary variables affect the timing of aggregate output, while fiscal variables determine its present value and the wealth effect.

Monetary Policy and Wealth Effects: The Role of Risk and Heterogeneity

Analytical heterogeneous-agents model with: i) rare disasters and ii) positive private debt. Model captures time-varying risk premia and precautionary savings in a linearized setting. Wealth effects induced by time-varying risk and private debt account for the bulk of the output response to monetary policy.

Sowing the Seeds of Financial Crises: Endogenous Asset Creation and Adverse Selection

Revise and Resubmit at Review of Economic Studies
What sows the seeds of financial crises and what policies can help avoid them? I model the interaction between the ex-ante production of assets and ex-post adverse selection in financial markets.

Bond Premium Cyclicality and Liquidity Traps

Revise and Resubmit at Review of Economic Studies
Best Paper Award at the
The nature of safety traps and their policy implications are determined by the cyclicality of the bond premium. In the data, we find evidence that favors self-fulfilling liquidity traps. We propose robust policies that prevent the existence of self-fulfilling traps and are expansionary in fundamental traps.

Work in Progress

Durable Crises

Fiscal Fragility