Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2016

A theory of money needs a proper place for financial intermediaries. Intermediaries diversify risks and create inside money. In downturns, micro-prudent intermediaries shrink their lending activity, fire-sell assets and supply less inside money, exactly when money demand rises. The resulting Fisher ...
Keywords: Monetary Economics, (Inside) Money, Endogenous Risk Dynamics;
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2015

In this paper, we establish the importance of experience in international trade in reducing unmeasured trade costs and facilitating bilateral trade. We find a strong role for experience, measured in years of positive trade, for both aggregate and sectoral bilateral trade. In an augmented gravity fra...
Keywords: Gravity model, Dark Trade Costs, Experience, Extensive and intensive margin
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2019

We assess the international spillovers stemming from identified US conventional and unconventional monetary policy shocks by estimating a global VAR model which exploits panel variation on several macroeconomic and financial indicators for a set of advanced and emerging economies. We find that US mo...
Keywords: trilemma, global financial cycle, monetary policy spillovers
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

The upsurge of shadow banking is typically driven by rising financing demand from certain real sectors. In China, the 4 trillion yuan stimulus package in 2009 was behind the rapid growth of shadow banking after 2012, expediting the development of Chinese corporate bond markets in the poststimulus pe...
Keywords: Local Government Financing Vehicles, Municipal Corporate Bonds, Shadow Banking in China
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2025

We build a macro-finance model with an occasionally binding financing constraint where real interest rates have opposite effects on current and future financial stability, with the contemporaneous impact driven by valuation effects and the future impact driven by reach-for-yield by intermediaries. W...
Keywords: Occasionally Binding Financing Constraint, financial crises, monetary policy, Financial Stability Policy, Macroeconomic Model with Banks
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