New working papers/updates
Forward Guidance without Common Knowledge (with Chen Lian): Relaxing common knowledge achnors expectations of inflation and income; attenuates general-equilibrium effects; and reduces the forward-guidance puzzle and the paradox of flexibility.
Public Debt as Private Liquidity: Optimal Policy (with Fabrice Collard and Harris. Dellas): Optimal fiscal policy when public debt serves as collateral/outside liquidity. Departure from tax smoothing. New lessons for optimal response to fiscal shocks and financial crises. [slides]
A (Real) Theory of the Keynesian Multiplier (with Chen Lian): A formalization of the aggregate-demand channel without nominal rigiidity. Rationalizes co-movemnent and large fiscal mutlipliers. [draft coming soon]
Dampening GE: from Micro to Macro (with Chen Lian): Revisiting general-equilibrium effects in macro models. Argue that macro effects are closer to micro-elasticities in the short run. [draft coming soon]
Incomplete Information in Macroeconomics (with Chen Lian): Reviews and synthesizes recent work on global games, beauty contests, and their applications in macroeconomics. Argues that incomplete information is a vehicle for accommodating frictions in coordination and for enriching expectations.
An Anatomy of the Business Cycle Data (with F. Collard and H. Dellas): Evidence at odds with existing interpretations of the business cycle. Guidance for building new models. [draft coming soon]