Working Papers

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

Revise and Resubmit at The 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

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.

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.

Fiscal Origins of Monetary Paradoxes (new version coming soon!)

We revisit the monetary paradoxes of standard monetary models in a liquidity trap and study the channels through which they occur.

Work in Progress

Durable Crises

Fiscal Fragility