We describe a framework for understanding the factors that underpin economic resilience,
and identify the basic tools for implementing it. This principally involves examining resilience …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

We develop a tractable method for augmenting macroeconomic models with autonomous
variation in higher‐order beliefs. We use this to accommodate a certain type of waves of …

Are business cycles mainly a response to persistent exogenous shocks, or do they instead
reflect a strong endogenous mechanism which produces recurrent boom-bust phenomena …

Credit booms are not rare, some end in a crisis (bad booms) whereas others do not (good
booms). We document that credit booms start with an increase in productivity growth, which …

A new edition of a book presenting a unified framework for studying the role of money and
liquid assets in the economy, revised and updated. In Money, Payments, and Liquidity …

Can central banks defuse rising stability risks in financial booms by leaning against the wind
with higher interest rates? This paper studies the state-dependent effects of monetary policy …

This paper empirically investigates the possibility of self-sustained oscillations at business
cycle frequency. The theoretical model considers aggregate economic activity and the …

Standard macroeconomic models assume that households are rational in the sense that
they are perfect utility maximizers and explain economic dynamics in terms of shocks that …

Searching for partners involves informational persistence that reduces future traders'
matching probability. In this article, traders who are no longer available but who left tracks on …