Safe assets play a critical role in an (y) economy. A safe asset is an asset that is (almost
always) valued at face value without expensive and prolonged analysis. By design, there is …

This review provides a guide to macroeconomic applications of the theory of rational
bubbles. It shows that rational bubbles can be easily incorporated into standard …

This lecture focuses on the costs of public debt when safe interest rates are low. I develop
four main arguments. First, I show that the current US situation, in which safe interest rates …

Long-term real interest rates across the world have fallen by about 450 basis points over the
past 30 years. The co-movement in rates across both advanced and emerging economies …

Money markets are fundamentally different from stock markets. Stock markets are about
price discovery for the purpose of allocating risk efficiently. Money markets are about …

A new literature studies the use of capital controls to prevent financial crises. Within this new
framework, we show that when exchange rate policy is costless, there is no need for capital …

We test for the existence of housing bubbles associated with a failure of the transversality
condition that requires the present value of payments occurring infinitely far in the future to …

Between 2007 and 2013, US households experienced a large and persistent decline in net
worth. The objective of this article is to study the business cycle implications of such a …

What is the role of monetary policy in a bubbly world? To address this question, we study an
economy in which financial frictions limit the supply of assets. The ensuing scarcity …

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 …