How do financial frictions affect the response of an economy to aggregate shocks? In this paper, we address this … liquid assets to smooth individual income shocks. We show that the response of this economy to aggregate shocks depends on … reserves and the response of the economy tends to be larger. In this case, agents expect to be liquidity constrained and, due …

We review the evidence that artificial intelligence (AI) is having a large effect on the economy. Across a variety of …

This paper considers the role of policy in an AI-intensive economy (interpreting AI broadly). It emphasizes the speed …

The paper opens with a description of the salient features of the Israeli economy. These consist of a large government … indexation of both wages and long term financial commitments. A descriptive model of the economy is then presented, which … includes the particular asset menu of the Israeli economy, and its properties examined. Finally,the rrodel is used in analyzing …

macro economy. Using a panel of 131 monthly macroeconomic time series for the sample 1964:1-2007:12, we estimate 8 static …