Accommodative monetary policy during the financial crisis was instrumental in preventing a deeper recession. Views differ, however, on how long such measures should be kept in place. At the heart of this debate is the notion that a protracted period of policy accommodation could create...

This paper investigates the transmission channel of macroprudential instruments in a closed economy DSGE model with a rich set of financial frictions. Banks' decisions on risky retail loan concessions are based on borrowers' capacity to settle their debt with labor income. We also introduce...

Abstract: High inequality has long been regarded as one of the main problems facing Latin American countries. To understand better the determinants of inequality and to help guide thinking about policy options, it would be useful to know whether inequality mainly reflects low intergenerational...