In this paper we provide a vacancyindex for Chile for the period 1986 to the second quarter of 2002. This index is calculated using the number of jobs offered in newspapers’ advertisements of the 5 main urban areas. This information, in addition with employment and labor force data, is used to...

An informational role of policy arises in economies where large fluctuations are triggered by selffulfilling expectation switches between efficient "optimism" and inefficient "pessimism," a feature that is common in many dynamic economies with coordination failures. Policy affects the...

How should policy be optimally designed when a monetary authority faces a private sector that is skeptical about policy announcements and makes inferences about the monetary authority’s ability to follow through on policy plans from economic data? To provide an answer to this question, we...

I augment the rational inattention model of price-setting (in which firms have a limited capacity to process information) to allow firms to produce multiple goods. My main contribution is to highlight the economies of scale in the use of information that arise in this context, which firms...

Could prudential policies backfire by making the lack of commitment problem of bailouts worse? This commitment problem refers to the excessive risk taken by banks and financial institutions in expectations of bailouts if crises occur, which in turn increase financial fragility and the severity...