This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

This essay surveys the literature on directed search and competitive search equilibrium,
covering theory and a variety of applications. These models share features with traditional …

This paper develops a micro-founded general equilibrium model of payments to study the
impact of a central bank digital currency (CBDC) on intermediation of private banks. If banks …

We show that after monetary policy announcements, the conditional volatility of stock market
returns rises more for firms with stickier prices than for firms with more flexible prices. This …

Using a unique dataset of daily US and UK price listings and the associated number of clicks
for precisely defined goods from a major shopping platform, we shed new light on how …

Economists have interpreted the evidence that prices change every four months as implying
that sticky prices cannot be important for monetary transmission. Theory implies that this …

We review recent evidence on price rigidity from the macroeconomics literature and discuss
how this evidence is used to inform macroeconomic modeling. Sluggish price adjustment is …

We propose a theory of self-fulfilling unemployment fluctuations. When a firm increases its
workforce, it raises demand and weakens competition facing other firms, as employed …

African-American students are considerably more likely than their white peers to be rated as
disruptive by their teacher and experience school discipline, but are also much less likely to …

We develop a theory of the role of assets in the exchange process and use it to study several
issues in macro, monetary, and financial economics, both analytically and quantitatively. Our …