This study investigates the relationship between inflation and financial market performance.
Largely, our objective is to review the extensive literature that has grown up on this topic …

We employ a Threshold Vector Autoregression (TVAR) methodology in order to examine the
nonlinear nature of the interactions among credit market conditions, monetary policy and …

This thesis is a trilogy that develops models of non-rational expectations, and studies their
implications in financial and macroeconomic applications. The first essay draws a distinction …

I study the effects of tax evasion on economic growth by focusing on the cultural aspects of
tax compliance and their effect on the extensive margin of tax evasion. A cultural norm that …

Is asset liquidity a source of price volatility? We answer this question within a continuous-
time, New Monetarist economy under extrinsic uncertainty where the role of an asset to …

We revisit the model of endogenous credit cycles by Matsuyama (2013, Sections 2–4). First,
we show that the same dynamical system that generates the equilibrium trajectory is …

MANY MODERN APPROACHES to macroeconomics attach no significance to financial
intermediation. This is true despite the fact that various measures of banking activity are …

This paper builds models of nonlinear dynamics in the aggregate investment and borrower
net worth to study the causes and nature of endogenous credit cycles. The basic model has …

We propose a rational model of endogenous cycles generated by the two-way interaction
between credit market sentiments and real outcomes. Sentiments are high when most …

We discover sentiment-driven equilibria in popular models of imperfect risk sharing. In these
equilibria, sentiment dynamics behave like uncertainty shocks, in the sense that self-fulfilled …