Working Papers

Bond Premium Cyclicality and Liquidity Traps

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

Framework to study wealth effects, i.e., revaluation of financial and human wealth, in RANK and HANK models. Wealth effects in a standard DSGE rely on counterfactual fiscal response. Introducing private debt substantially improves model performance.

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.

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

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.

Work in Progress

Durable Crises

Fiscal Fragility