It is high time we rediscovered the role of the financial cycle in macroeconomics. In the
environment that has prevailed for at least three decades now, it is not possible to …

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 …

We argue that the vast bulk of movements in aggregate real economic activity during the
Great Recession were due to financial frictions. We reach this conclusion by looking through …

Few areas of monetary economics have been studied as extensively as the transmission
mechanism. The literature on this topic has evolved substantially over the years, following …

We develop and estimate a general equilibrium search and matching model that accounts
for key business cycle properties of macroeconomic aggregates, including labor market …

This paper proposes and implements a novel structural VAR approach to the identification of
news shocks about future technology. The news shock is identified as the shock orthogonal …

We consider the desirability of modifying a standard Taylor rule for interest rate policy to
incorporate adjustments for measures of financial conditions. We consider the …

This paper develops a new theory of fluctuations—one that helps accommodate the notions
of “animal spirits” and “market sentiment” in unique‐equilibrium, rational‐expectations …

Aggregate and sectoral comovement are central features of business cycles, so the ability to
generate comovement is a natural litmus test for macroeconomic models. But it is a test that …

We estimate a New-Neoclassical Synthesis business cycle model with two investment
shocks. The first, an investment-specific technology shock, affects the transformation of …