This article surveys the macroeconomic implications of financial frictions. Financial frictions
lead to persistence and when combined with illiquidity to non-linear amplification effects …

This paper provides an introduction to the new economics of prudential capital controls in
emerging economies. This literature is based on the notion that there are externalities …

In advanced economies, a century-long, near-stable ratio of credit to GDP gave way to rapid
financialization and surging leverage in the last forty years. This “financial hockey stick” …

The outcome of any important macroeconomic policy change is the net effect of forces
operating on different parts of the economy. A central challenge facing policymakers is how …

This article studies the full equilibrium dynamics of an economy with financial frictions. Due
to highly nonlinear amplification effects, the economy is prone to instability and occasionally …

Financial crashes were followed by deep recessions in the Sudden Stops of emerging
economies. An equilibrium business cycle model with a collateral constraint explains this …

We argue that positive co‐movements between land prices and business investment are a
driving force behind the broad impact of land‐price dynamics on the macroeconomy. We …

We provide evidence on the relationship between aggregate uncertainty and the
macroeconomy. Identifying uncertainty shocks using methods from the news shocks …

We study the cyclical implications of credit market imperfections in a quantitative dynamic,
stochastic general equilibrium model wherein firms face persistent shocks to aggregate and …

We document three facts concerning how the structure of housing finance affects the
monetary transmission mechanism: first, the characteristics of residential mortgage markets …