Why are interest rates so low in the Unites States? We find that they are low primarily
because the premium for safety and liquidity has increased since the late 1990s, and to a …

We augment a standard monetary dynamic general equilibrium model to include a
Bernanke-Gertler-Gilchrist financial accelerator mechanism. We fit the model to US data …

This paper surveys the theoretical and empirical literature on the macroeconomic
implications of financial imperfections. It focuses on two major channels through which …

This paper reviews the theoretical literature at the intersection of macroeconomics and
finance to draw lessons on the connection between vulnerabilities in the financial system …

This paper presents a model of a monetary economy where there are differences in liquidity
across assets. Money circulates because it is more liquid than other assets, not because it …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and
real rigidities and ask: can a shock to the liquidity of private paper lead to a collapse in short …

This paper studies how digital innovation affects small and medium-sized enterprises'
financial access and productivity growth in a currency union with an incomplete credit …

Reducing energy intensity and coping with climate change are important policy issues that
face all countries. This study examines the impact of business cycles (recessions and …

We estimate demand, supply, monetary, investment and financial shocks in a VAR identified
with a minimum set of sign restrictions on US data. We find that financial shocks are major …

I study an economy where asymmetric information about the quality of capital endogenously
determines liquidity. Liquid funds are key to relaxing financial constraints on investment and …