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 article surveys the macroeconomic implications of financial frictions. Financial frictions
lead to persistence and when combined with illiquidity to non-linear amplification effects …

Blockchain technology provides decentralized consensus and potentially enlarges the
contracting space through smart contracts. Meanwhile, generating decentralized consensus …

This paper develops a theory of financing of entrepreneurial ventures via crypto tokens,
which is not limited to platform-based ventures. We compare token financing with traditional …

This article studies the full equilibrium dynamics of an economy with financial frictions. Due
to highly nonlinear amplification effects, the economy is prone to instability and occasionally …

This article develops a model that speaks to the goals and methods of financial stability
policies. There are three main points. First, from a normative perspective, the model defines …

We present a standard model of financial innovation, in which intermediaries engineer
securities with cash flows that investors seek, but modify two assumptions. First, investors …

In this book, two of America's leading economists provide the first integrated treatment of the
conceptual, practical, and empirical foundations for credit risk pricing and risk measurement …

We compare the characteristics of real-world financial contracts to their counterparts in
financial contracting theory. We do so by studying the actual contracts between venture …

We present a model of shadow banking in which banks originate and trade loans, assemble
them into diversified portfolios, and finance these portfolios externally with riskless debt. In …