Do periods of persistently loose monetary policy increase financial fragility and the
likelihood of a financial crisis? This is a central question for policymakers, yet the literature …

We integrate a high-frequency monetary event study into a mixed-frequency macro-finance
model and structural estimation. The model and estimation allow for jumps at Fed …

This paper studies how household inequality shapes the effects of the zero lower bound
(ZLB) on nominal interest rates on aggregate dynamics. To do so, we consider a …

Where is the natural rate of interest? How has it evolved? And where is it heading? In core
advanced economies, several estimates of the natural rate have edged up. Shifts in the …

We build a model in which the Fed and the market disagree about future aggregate demand.
The market anticipates monetary policy “mistakes,” which affect current demand and induce …

Prevailing explanations of persistently low interest rates appeal to a secular decline in the
natural interest rate, or r-star, due to factors outside monetary policy's control. We propose …

The CBO cost releases of US spending and tax proposals contain valuable news about
future primary surpluses that are priced in by US Treasury markets. Using daily event …

Governments and central banks can protect either taxpayers or bondholders from
government spending shocks. When they choose to insulate taxpayers, government bond …

We document a shift in the market impact of the press conference given by the Federal
Reserve Chair at the close of FOMC meetings. Using intraday trading data, we find that …

The paper reviews the evidence on the macroeconomic announcement premium and its
implications on equilibrium asset pricing models. Empirically, a large fraction of the equity …