How much capital should financial intermediaries hold? We propose a general equilibrium
model with a financial sector that makes risky long‐term loans to firms, funded by deposits …

A standard New Keynesian model is extended to include a rich financial system in which
financially constrained banks lend to firms and homeowners via defaultable long-term loans …

We develop an asset pricing model with endogenous corporate policies that explains how
inflation jointly affects real asset prices and corporate default risk. Our model includes two …

Fannie Mae and Freddie Mac, the two large government-sponsored enterprises (GSEs) that
are at the center of US residential mortgage finance, are “elephants in the room” that are …

Can shifts in the credit supply generate a boom-bust cycle similar to the one observed in the
US around 2008? To answer this question, we develop a general equilibrium model that …

I document three salient features of the transmission of monetary policy shocks: imperfect
pass-through to deposit rates, impact on credit spreads, and substitution between deposits …

We develop a general equilibrium model in which households' mortgage leverage is
determined by supply and demand forces, where the price of credit impacts the quantity of …

We quantify the relative contributions of credit supply and housing demand shocks to the
dynamics of the US housing market and macroeconomy around 2008. Using a general …

This study comprehensively analyzes the role of house prices in the transmission
mechanism of unconventional monetary policy (UMP) in Japan using structural vector …

We identify and study two mechanisms that can overturn the stabilizing effects of
unemployment insurance (UI) policies. First, households in economies with more generous …