We study the welfare costs of markups in a dynamic model with heterogeneous firms and
endogenous markups. We provide aggregation results summarizing the macro implications …

The business cycle is alive and well, and real variables respond to it more or less as they
always did. Witness the Great Recession. Inflation, in contrast, has gone quiescent. This …

Globalization of banking raises questions about banks' liquidity management, their response
to liquidity shocks, and the potential for international shock propagation. We conjecture that …

Inflation dynamics have been difficult to explain over the last decade. This paper explores if
a more comprehensive treatment of globalization can help. CPI inflation has become more …

The relationship central to most inflation models, between slack and inflation, seems to have
weakened. Do we need a new framework? This paper uses three very different approaches …

This paper presents a comprehensive review of the newly emerging literature on the New
Keynesian Phillips Curve (NKPC). The theoretical predictions, econometric estimation …

This paper evaluates the hypothesis that globalization has increased the role of international
factors and decreased the role of domestic factors in the inflation process in industrial …

We study how changes in the value of the steady-state real interest rate affect the optimal
inflation target, both in the US and the euro area, using an estimated New Keynesian DSGE …

This paper is a partial exploration of mechanisms through which global factors influence the
tradeoffs that US monetary policy faces. It considers three main channels. The first is the …

We construct, and then estimate by maximum likelihood, a tractable dynamic stochastic
general equilibrium model with incomplete insurance and heterogenous agents. The key …