Annual Conference

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International Macroeconomics, Money & Banking

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May 2015

The Economics of Debt, Bailouts and the Eurozone Crisis

Pierre-Olivier GOURINCHAS, Philippe MARTIN
Despite a formal 'no-bailout clause', we estimate significant net present value transfers from the European Union to Cyprus, Greece, Ireland, Portugal and Spain, ranging from roughly 0.5% (Ireland) to 43% (Greece) of 2011 output during the recent Eurozone crisis. We propose a model to analyze and un...
Keywords: sovereign debt, Bailouts, Eurozone Crisis
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2014

How Constraining Are Limits to Arbitrage?

Wenlan QIAN, Alexander LJUNGQVIST
Limits to arbitrage play a central role in behavioral finance. They interfere with arbitrage processes so that security prices can deviate from true values for extended periods of time. We show empirically that limits to arbitrage need not be binding even in settings characterized by extreme costs o...
Keywords: Limits to arbitrage, short sale constraints, mispricing, Short Selling, activist short sellers, trading strategies, Behavioral finance, market efficiency
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2019

Does fiscal policy matter for stock-bond return correlation?

Hao ZHOU, Ji ZHANG, Tao ZHA, Erica X.N. LI
We explore an important role of monetary-fiscal policy interactions in explaining three stylized facts: (1) a positive correlation of stock and bond returns in 1971-2001 and a negative one after 2001, (2) a negative correlation of consumption and inflation in 1971-2001 and a positive one after 2001,...
Keywords: Stock-bond return correlation, consumption-inflation correlation, fiscal-monetary policy regime, bond risk premium, technology shock, investment shock
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Webinar Series

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Pandemic

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Aug 2020

The Effects of the Coronavirus Pandemic in Emerging Markets and Developing Economies: An Optimistic Preliminary Account

Pinelopi Koujianou GOLDBERG, Tristan REED
Early in 2020, the general expectation was that the coronavirus pandemic’s effects would be more severe in developing countries than in advanced economies, both on the public health and economic fronts. Preliminary evidence as of June 2020 supports a more optimistic assessment. To date, most low- ...
Keywords: Coronavirus, Pandemic, emerging markets, Developing Countries
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Webinar Series

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Pandemic

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Jul 2020

Unmet Needs: Healthcare Crowd-out During the COVID-19 Pandemic

Manuel HERMOSILLA, Jian NI, Haizhong WANG, Jin ZHANG
Efficient resource allocation, during a possible new wave of the COVID-19 pandemic and similar public health crisis, requires understanding whether (and to which extent) COVID-related healthcare demand may displace or crowd-out non-COVID care. We study this crowd-out hypothesis using a large sample ...
Keywords: COVID-19, Healthcare Crowd-Out, Differences-In-Differences-In-Differences, Online Drug Retailing, Healthcare Capacity, Rx/OTC
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