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Farhi, Emmanuel - 2010

expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both … Gaussian and disaster risk and can be estimated even in samples that do not contain disasters. Estimating the model over the …

Persistent link: https://www.econbiz.de/10013152552

Speculative growth : hints from the US economy

Caballero, Ricardo J.; Farhi, Emmanuel; Hammour, Mohamad L. - In: The American economic review 96 (2006) 4, pp. 1159-1192

Persistent link: https://www.econbiz.de/10003384879

How much would you pay to resolve long-run risk?

Epstein, Larry G.; Farhi, Emmanuel; Strzalecki, Tomasz - In: The American economic review 104 (2014) 9, pp. 2680-2697

Persistent link: https://www.econbiz.de/10010468891

Collective moral hazard, maturity mismatch, and systemic bailouts

Farhi, Emmanuel; Tirole, Jean - In: The American economic review 102 (2012) 1, pp. 60-93

Persistent link: https://www.econbiz.de/10009568210

Insurance and Taxation Over the Life Cycle

Farhi, Emmanuel - 2011

We consider a dynamic Mirrlees economy in a life cycle context and study the op- timal insurance arrangement. Individual productivity evolves as a Markov process and is private information. We use a first order approach in discrete and continuous time and obtain novel theoretical and numerical...

Persistent link: https://www.econbiz.de/10013130780

Bubbly Liquidity

Farhi, Emmanuel - 2011

This paper analyzes the possibility and the consequences of rational bubbles in a dy- namic economy where financially constrained firms demand and supply liquidity. Bub- bles are more likely to emerge, the scarcer the supply of outside liquidity and the more limited the pledgeability of...

Persistent link: https://www.econbiz.de/10013130781

Fiscal Devaluations

Farhi, Emmanuel - 2011

We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under...

Persistent link: https://www.econbiz.de/10013117401

Fiscal Multipliers : Liquidity Traps and Currency Unions

Farhi, Emmanuel - 2012

We provide explicit solutions for government spending multipliers during a liquidity trap and within a fixed exchange regime using standard closed and open-economy models. We confirm the potential for large multipliers during liquidity traps. For a currency union, we show that self-financed...

Persistent link: https://www.econbiz.de/10013100679

Fiscal Unions

Werning, Iván - 2012

We study cross-country risk sharing as a second-best problem for members of a currency union using an open economy … value of gaining access to any given level of aggregate risk sharing is greater for countries that are members of a currency … union. Second, we show that even if financial markets are complete, privately optimal risk sharing is constrained …

Persistent link: https://www.econbiz.de/10013102600

Dealing with the Trilemma : Optimal Capital Controls with Fixed Exchange Rates

Farhi, Emmanuel - 2012

particularly effective to address risk-premium shocks that affect the interest rate differential foreign investors require in a …. We show that capital controls may be optimal even if the exchange rate is not fixed in response to risk premium shocks or …

Persistent link: https://www.econbiz.de/10013104392