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Caballero, Ricardo J. - 2014

In this paper we provide a model of the macroeconomic implications of safe asset shortages. In particular, we discuss the emergence of a deflationary safety trap equilibrium with endogenous risk premia. It is an acute form of a liquidity trap, in which the shortage of a specific form of assets,...

Persistent link: https://www.econbiz.de/10012458738

Heterogeneity and Output Fluctuations in a Dynamic Menu-Cost Economy

Caballero, Ricardo J. - 1991

When firms face menu costs, the relation between their output and money is highly nonlinear. At the aggregate level, however, this needs not be so. In this paper we study the dynamic behavior of a general equilibrium menu-cost economy where firms are heterogeneous in the shocks they perceive,...

Persistent link: https://www.econbiz.de/10012475276

Improper Churn : Social Costs and Macroeconomic Consequences

Caballero, Ricardo J. - 1998

associated with structural unemployment and low productivity -- due to technological sclerosis' and a scrambling' of productivity … traditional unemployment cost is due to reduced productivity and is determined by the recession's cumulative effect on the economy …'s churn rate. Although a recessionary shock increases the economy's turbulence' at impact, semi-structural VAR evidence from …

Persistent link: https://www.econbiz.de/10012472095

Contingent Reserves Management : An Applied Framework

Caballero, Ricardo J. - 2004

One of the most serious problems that a central bank in an emerging market economy can face, is the sudden reversal of capital inflows. Hoarding international reserves can be used to smooth the impact of such reversals, but these reserves are seldom sufficient and always expensive to hold. In...

Persistent link: https://www.econbiz.de/10012467904

Emerging Market Crises : An Asset Markets Perspective

Caballero, Ricardo J. - 1998

. Domestic assets experience dramatic depreciation and otherwise solvent investment projects and production, especially in the …

Persistent link: https://www.econbiz.de/10012471969

Macroeconomic Volatility in Latin America : A View and Three Case Studies

Caballero, Ricardo J. - 2000

After decades of trial, error, and occasional regress the pieces of a successful Latin American economic model can be seen scattered among the leading economies of the region. The most traditional macroeconomic maladies of the emerging world - such as chronic fiscal imbalances and monetary...

Persistent link: https://www.econbiz.de/10012470968

The Cost of Recessions Revisited : A Reverse-Liquidationist View

Caballero, Ricardo J. - 1999

The observation that liquidations are concentrated in recessions has long been the subject of controversy. One view holds that liquidations are beneficial in that they result in increased restructuring. Another view holds that liquidations are privately inefficient and essentially wasteful. This...

Persistent link: https://www.econbiz.de/10012471429

Prudential Monetary Policy

Caballero, Ricardo J. - 2019

Should monetary policy have a prudential dimension? That is, should policymakers raise interest rates to rein in financial excesses during a boom? We theoretically investigate this issue using an aggregate demand model with asset price booms and financial speculation. In our model, monetary...

Persistent link: https://www.econbiz.de/10012479926

The Macroeconomics of Specificity

Caballero, Ricardo J. - 1996

, and expansions run into bottlenecks. While, depending on the nature of the shock, expansions may require reinforcement or …

Persistent link: https://www.econbiz.de/10012473077

Price Rigidities, Asymmetries, and Output Fluctuations

Caballero, Ricardo J. - 1992

In this paper we characterize the average response of output to aggregate demand shocks in an economy where individual firms follow state-dependent pricing rules. We find that: (i) the average response of output to aggregate demand shocks decreases with core inflation and varies...

Persistent link: https://www.econbiz.de/10012474884