We develop a simple macroeconomic model of credit market imperfections with
heterogeneous investment projects. The projects differ in productivity, the investment …

We develop a model in which time-varying real investment opportunities lead to time-varying
adverse selection in the market for IPOs. The model is consistent with several stylized facts …

Will the Japanese government take the decisive but manageable policy actions needed to
bring about economic recovery? Despite claims to the contrary, macroeconomic expansion …

We introduce an informational asymmetry into an otherwise standard monetary growth
model and examine its implications for the determinacy of equilibrium, for endogenous …

Abstract The Great Financial Crisis of 2007-09 confirmed the vital importance of advancing
our understanding of macrofinancial linkages, the two-way interactions between the real …

Should a central bank deviate from its price stability objective to promote financial stability?
We study this question through the lens of a textbook New Keynesian model augmented …

We examine how initial public offering (IPO) valuation has changed over time by focusing on
three time periods: 1986‐1990, January 1997 to March 2000 (designated as the boom …

This paper introduces a framework for analyzing the role of financial factors as a source of
instability in small open economies. Our basic model is a dynamic open economy model …

Credit market imperfections provide the key to understanding many important issues in
business cycles, growth and development, and international economics. Recent progress in …

In this paper, we provide evidence for a risk-taking channel of monetary policy transmission
in the euro area that works through the relaxation of lending standards for borrowers. Our …