Research statement
Publications
“Imperfect Risk-Sharing and the Business Cycle," with David Berger and Luigi Bocola
Quarterly Journal of Economics, Volume 138, No. 3, 2023, p. 1765-1815. [Link] [Draft] [Slides]
“Reputation, Bailouts, and Interest Rate Spreads Dynamics," with Rishabh Kirpalani
AEJ:Macro, Volume 14, no. 3, 2022, p. 411-449 [Link] [Draft][Appendix][Slides]
"Rules without Commitment: Reputation and Incentives," with Rishabh Kirpalani
The Review of Economic Studies, Volume 88, no. 6, 2021, p. 2833-2856 [Link] [Draft] [Slides]
“Fiscal Rules, Bailouts, and Reputation in Federal Governments,” with Rishabh Kirpalani
American Economic Review, Volume 110, No. 3, 2020, p. 860-888 [Link] [Paper] [Slides]
"Rethinking Optimal Currency Areas,” with V.V. Chari and Patrick Kehoe
Journal of Monetary Economics, Volume 111, 2020, p. 80-94 [Link] [Paper] [Appendix]
"Credit Market Frictions and Trade Liberalizations,” with Wyatt Brooks,
Journal of Monetary Economics, Volume 111, 2020, p. 32-47 [Link] [Paper]
"On the Optimality of Financial Repression,” with V.V. Chari and Patrick Kehoe,
Journal of Political Economy, Volume 128, No. 2, 2020, p. 710-739 [Link] [Paper] [Appendix]
See also "Financial Repression: Evidence and Theory,” Minneapolis Fed Economic Policy Papers [Link]
"Self-Fulfilling Debt Crises: A Quantitative Analysis,” with Luigi Bocola
American Economic Review, Volume 109, No. 12, 2019, p. 4343-4377 [Link] [Paper] [Appendix] [Slides]
“Quantitative Sovereign Default Models and the European Debt Crisis," with Luigi Bocola and Gideon Bornstein
Journal of International Economics, 118 (2019): 20-30 [Link] [Paper] (Prepared for 2018 NBER ISOM Conference)
"Efficient Sovereign Default,”
The Review of Economic Studies, Volume 86. Issue 1, 2019, p. 282-312 [Link] [Paper] [Slides] [Extra Appendix]
Working Papers
"Bond Market Views of the Fed," with Luigi Bocola, Kasper Jørgensen, and Rishabh Kirpalani
Revise and Resubmit at the Journal of Political Economy, [Draft, Last revision: October 2024] [Slides]
"On the Optimal Allocation of Policy-Making," with Rishabh Kirpalani and Guillaume Sublet
Revise and Resubmit at the Review of Economic Studies, [Draft, Last revision: September 2024] [Slides]
"Long-Term Contracts, Commitment, and Optimal Information Disclosure," with Paolo Martellini
[Draft, Last revision: October 2024] [Slides]
"Unique Implementation with Market-Based Interventions," with Rishabh Kirpalani
[Draft, Last revision: January 2025] [Slides]
"Political Economy of Sovereign Debt: A Theory of Cycles of Populism and Austerity,”
with Mikhail Golosov and Ali Shourideh
[Draft, Last revision: (new version coming soon)] [Slides]
"Capital Mobility and Optimal Fiscal Policy without Commitment: A Rationale for Capital Controls?”
[Draft, Last revision: November 2012]
Work in Progress
"On the Design of a Robust Lender of Last Resort," with Rishabh Kirpalani [Slides]
"Accounting for Credibility: Monetary-Fiscal Interactions and the Credibility of Central Bank Mandates,"
with Luigi Bocola, Gaston Chaumont, and Rishabh Kirpalani [slides_mf_sed.pdf ]
"Emerging Market Spreads and Risk Premia: Risk-free rate and (in)convenience yield,"
with Xiang Fang (HKU) and Yang Liu (HKU) [Related slides]
"Monetary Policy without an Anchor," with Luigi Bocola, Kasper Jørgensen, and Rishabh Kirpalani
Book Chapters
“A Journey Down the Slippery Slope to the European Crisis: A Theorist’s Guide,”
with V.V. Chari and Patrick Kehoe, in Rules for International Monetary Stability: Past, Present and Future,
Edited by Michael Bordo and John Taylor, Hoover Press.
[Draft, Last revision: August 2016]
Discussions
"A Theory of Economic Coercion and Fragmentation," by Clayton, Maggiori, and Schreger,
Wharton Conference on Liquidity and Financial Fragility, October 2024 [Slides]
“The Optimal Degree of Discretion in Fiscal Policy," by Guillaume Sublet,
IMF/ECB Workshop on Fiscal Policy and Sovereign Debt, IMF Fiscal Affairs Dept, April 2024 [Slides]
“Can the Fed Control Inflation? Stock Market Implications," by Andrei and Hasler,
Adam Smith Workshop - Asset Prices, CEPR, London, April 2024 [Slides]
“A Theory of Fiscal Responsibility and Irresponsibility," by Marina Halac and Pierre Yared,
Conference on Fiscal Policy in an Era of High Debt, IMF Fiscal Affairs Dept, November 2023 [Slides]
“Making Sovereign Debt Safe with a Financial Stability Fund," by Yan Liu, Ramon Marimon and Adrien Wicht,
Conference on Sovereign Debt, Minneapolis Fed, November 2022 [Slides]
“Sovereign Debt, Default Risk, and the Liquidity of Government Bonds," by Gaston Chaumont,
NBER IFM Spring meeting, March 2020 [Slides]
"Optimal Trade Policy with Trade Imbalances," by Mostafa Beshkar and Ali Shourideh,
Carnegie-Rochester-NYU Conference on Public Policy, April 2019 [Slides] [Written Discussion]
“Monetary Independence and Rollover Crises," by Javier Bianchi and Jorge Mondragon,
NBER IFM Spring meeting, March 2019 [Slides]
"Sovereign Debt and the Effects of Fiscal Austerity," by Diego Anzoategui,
7th Workshop on International Economics, Atlanta Fed, December 2018 [Slides]
“Currency Choice in Contracts," by Andres Drenik, Rishabh Kirpalani, and Diego Perez,
NBER IFM Fall meeting, October 2018 [Slides]
Central Bank Balance Sheet Policies without Rational Expectations,” by Luigi Iovino and Dmitriy Sergeyev,
NBER IFM Spring meeting, March 2018 [Slides]
“Default Risk, Sectoral Reallocation, and Persistent Recessions,”
by Cristina Arellano, Yan Bai, and Gabriel Mihalache, NBER ISOM Conference, July 2017, Vilnius [Slides]
“A Model of Fickle Capital Flows and Retrenchment: Global Liquidity Creation and Reach for Safety and Yield,”
by Ricardo Caballero and Alp Simsek, NBER IFM Fall meeting, October 2016 [Slides]
"Liquidity Traps, Capital Flows and Currency Wars," by Sushant Acharya and Julien Bengui,
ITAM-PIER Conference , August 2016 [Slides]
“Sovereign Debt and Structural Reforms,” by Andreas Muller, Kjetil Storesletten,
and Fabrizio Zilibotti, Workshop on Political Economy, EIEF, July 2016 [Slides]
"Financial Innovation for Rent Extraction," by Anton Korinek,
ASSA Meeting, January 2016 [Slides]
"Sovereign Default: The Role of Expectations," by João Ayres, Gaston Navarro, Juan Pablo Nicolini, and Pedro Teles,
Barcelona Summer Forum, Workshop on International Capital Flows, June 2015 [Slides]
"Sovereign Debt, Domestic Banks and the Provision of Public Liquidity," by Diego Perez,
New Faces in International Economics Conference, May 2015 [Slides]
"International Liquidity and Exchange Rate Dynamics," by Xavier Gabaix and Matteo Maggiori,
NBER Monetary Economics Meeting, March 2014 [Slides]
Publications
“Imperfect Risk-Sharing and the Business Cycle," with David Berger and Luigi Bocola
Quarterly Journal of Economics, Volume 138, No. 3, 2023, p. 1765-1815. [Link] [Draft] [Slides]
“Reputation, Bailouts, and Interest Rate Spreads Dynamics," with Rishabh Kirpalani
AEJ:Macro, Volume 14, no. 3, 2022, p. 411-449 [Link] [Draft][Appendix][Slides]
"Rules without Commitment: Reputation and Incentives," with Rishabh Kirpalani
The Review of Economic Studies, Volume 88, no. 6, 2021, p. 2833-2856 [Link] [Draft] [Slides]
“Fiscal Rules, Bailouts, and Reputation in Federal Governments,” with Rishabh Kirpalani
American Economic Review, Volume 110, No. 3, 2020, p. 860-888 [Link] [Paper] [Slides]
"Rethinking Optimal Currency Areas,” with V.V. Chari and Patrick Kehoe
Journal of Monetary Economics, Volume 111, 2020, p. 80-94 [Link] [Paper] [Appendix]
"Credit Market Frictions and Trade Liberalizations,” with Wyatt Brooks,
Journal of Monetary Economics, Volume 111, 2020, p. 32-47 [Link] [Paper]
"On the Optimality of Financial Repression,” with V.V. Chari and Patrick Kehoe,
Journal of Political Economy, Volume 128, No. 2, 2020, p. 710-739 [Link] [Paper] [Appendix]
See also "Financial Repression: Evidence and Theory,” Minneapolis Fed Economic Policy Papers [Link]
"Self-Fulfilling Debt Crises: A Quantitative Analysis,” with Luigi Bocola
American Economic Review, Volume 109, No. 12, 2019, p. 4343-4377 [Link] [Paper] [Appendix] [Slides]
“Quantitative Sovereign Default Models and the European Debt Crisis," with Luigi Bocola and Gideon Bornstein
Journal of International Economics, 118 (2019): 20-30 [Link] [Paper] (Prepared for 2018 NBER ISOM Conference)
"Efficient Sovereign Default,”
The Review of Economic Studies, Volume 86. Issue 1, 2019, p. 282-312 [Link] [Paper] [Slides] [Extra Appendix]
Working Papers
"Bond Market Views of the Fed," with Luigi Bocola, Kasper Jørgensen, and Rishabh Kirpalani
Revise and Resubmit at the Journal of Political Economy, [Draft, Last revision: October 2024] [Slides]
"On the Optimal Allocation of Policy-Making," with Rishabh Kirpalani and Guillaume Sublet
Revise and Resubmit at the Review of Economic Studies, [Draft, Last revision: September 2024] [Slides]
"Long-Term Contracts, Commitment, and Optimal Information Disclosure," with Paolo Martellini
[Draft, Last revision: October 2024] [Slides]
"Unique Implementation with Market-Based Interventions," with Rishabh Kirpalani
[Draft, Last revision: January 2025] [Slides]
"Political Economy of Sovereign Debt: A Theory of Cycles of Populism and Austerity,”
with Mikhail Golosov and Ali Shourideh
[Draft, Last revision: (new version coming soon)] [Slides]
"Capital Mobility and Optimal Fiscal Policy without Commitment: A Rationale for Capital Controls?”
[Draft, Last revision: November 2012]
Work in Progress
"On the Design of a Robust Lender of Last Resort," with Rishabh Kirpalani [Slides]
"Accounting for Credibility: Monetary-Fiscal Interactions and the Credibility of Central Bank Mandates,"
with Luigi Bocola, Gaston Chaumont, and Rishabh Kirpalani [slides_mf_sed.pdf ]
"Emerging Market Spreads and Risk Premia: Risk-free rate and (in)convenience yield,"
with Xiang Fang (HKU) and Yang Liu (HKU) [Related slides]
"Monetary Policy without an Anchor," with Luigi Bocola, Kasper Jørgensen, and Rishabh Kirpalani
Book Chapters
“A Journey Down the Slippery Slope to the European Crisis: A Theorist’s Guide,”
with V.V. Chari and Patrick Kehoe, in Rules for International Monetary Stability: Past, Present and Future,
Edited by Michael Bordo and John Taylor, Hoover Press.
[Draft, Last revision: August 2016]
Discussions
"A Theory of Economic Coercion and Fragmentation," by Clayton, Maggiori, and Schreger,
Wharton Conference on Liquidity and Financial Fragility, October 2024 [Slides]
“The Optimal Degree of Discretion in Fiscal Policy," by Guillaume Sublet,
IMF/ECB Workshop on Fiscal Policy and Sovereign Debt, IMF Fiscal Affairs Dept, April 2024 [Slides]
“Can the Fed Control Inflation? Stock Market Implications," by Andrei and Hasler,
Adam Smith Workshop - Asset Prices, CEPR, London, April 2024 [Slides]
“A Theory of Fiscal Responsibility and Irresponsibility," by Marina Halac and Pierre Yared,
Conference on Fiscal Policy in an Era of High Debt, IMF Fiscal Affairs Dept, November 2023 [Slides]
“Making Sovereign Debt Safe with a Financial Stability Fund," by Yan Liu, Ramon Marimon and Adrien Wicht,
Conference on Sovereign Debt, Minneapolis Fed, November 2022 [Slides]
“Sovereign Debt, Default Risk, and the Liquidity of Government Bonds," by Gaston Chaumont,
NBER IFM Spring meeting, March 2020 [Slides]
"Optimal Trade Policy with Trade Imbalances," by Mostafa Beshkar and Ali Shourideh,
Carnegie-Rochester-NYU Conference on Public Policy, April 2019 [Slides] [Written Discussion]
“Monetary Independence and Rollover Crises," by Javier Bianchi and Jorge Mondragon,
NBER IFM Spring meeting, March 2019 [Slides]
"Sovereign Debt and the Effects of Fiscal Austerity," by Diego Anzoategui,
7th Workshop on International Economics, Atlanta Fed, December 2018 [Slides]
“Currency Choice in Contracts," by Andres Drenik, Rishabh Kirpalani, and Diego Perez,
NBER IFM Fall meeting, October 2018 [Slides]
Central Bank Balance Sheet Policies without Rational Expectations,” by Luigi Iovino and Dmitriy Sergeyev,
NBER IFM Spring meeting, March 2018 [Slides]
“Default Risk, Sectoral Reallocation, and Persistent Recessions,”
by Cristina Arellano, Yan Bai, and Gabriel Mihalache, NBER ISOM Conference, July 2017, Vilnius [Slides]
“A Model of Fickle Capital Flows and Retrenchment: Global Liquidity Creation and Reach for Safety and Yield,”
by Ricardo Caballero and Alp Simsek, NBER IFM Fall meeting, October 2016 [Slides]
"Liquidity Traps, Capital Flows and Currency Wars," by Sushant Acharya and Julien Bengui,
ITAM-PIER Conference , August 2016 [Slides]
“Sovereign Debt and Structural Reforms,” by Andreas Muller, Kjetil Storesletten,
and Fabrizio Zilibotti, Workshop on Political Economy, EIEF, July 2016 [Slides]
"Financial Innovation for Rent Extraction," by Anton Korinek,
ASSA Meeting, January 2016 [Slides]
"Sovereign Default: The Role of Expectations," by João Ayres, Gaston Navarro, Juan Pablo Nicolini, and Pedro Teles,
Barcelona Summer Forum, Workshop on International Capital Flows, June 2015 [Slides]
"Sovereign Debt, Domestic Banks and the Provision of Public Liquidity," by Diego Perez,
New Faces in International Economics Conference, May 2015 [Slides]
"International Liquidity and Exchange Rate Dynamics," by Xavier Gabaix and Matteo Maggiori,
NBER Monetary Economics Meeting, March 2014 [Slides]