Information disclosure is an essential component of regulation in financial markets. In this
article, we provide a cohesive analytical framework to review certain key channels through …

This paper discusses the evolution of central bank communication, focusing on recent efforts
by central banks to engage with a wider audience via social media. We document the social …

How does the economy respond to news about future policies or future fundamentals?
Standard practice assumes that agents have common knowledge of such news and face no …

We study games in which a network mediates strategic spillovers and externalities among
the players. How does a planner optimally target interventions that change individuals' …

This paper presents a model in which price setting firms decide what to pay attention to,
subject to a constraint on information flow. When idiosyncratic conditions are more variable …

This paper develops a new theory of fluctuations—one that helps accommodate the notions
of “animal spirits” and “market sentiment” in unique‐equilibrium, rational‐expectations …

We study an optimal disclosure policy of a regulator that has information about banks (eg,
from conducting stress tests). In our model, disclosure can destroy risk-sharing opportunities …

Stress tests have become an important component of the supervisory toolkit. However, the
extent of disclosure of stress-test results remains controversial. We argue that while stress …

Geography and social links shape economic interactions. In industries, schools, and
markets, the entire network determines outcomes. This paper analyzes a large class of …

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 …