shocks if it ties the hands of policy makers. But any decision to forsake exchange-rate flexibility might compromise shock … absorption in a world of real shocks and nominal stickiness. A simple model shows how a lack of flexibility can be discerned in …

monetary shocks is independent of the shock size in time-dependent models, while it is non-linear in state-dependent models. We …

cyclical pattern. Over that cycle, world asset prices, leverage, and capital flows move in concert with global growth …

Aggregate housing demand shocks are an important source of house price fluctuations in the standard macroeconomic …-rent puzzle"). We build a tractable heterogeneous-agent model that provides a microeconomic foundation for housing demand shocks …. The model predicts that a credit supply shock can generate large comovements between the house price and the price …

We revisit the question of why shifts in aggregate demand drive business cycles. Our theory combines intertemporal … supply to respond to shifts in aggregate demand without nominal rigidity. The second introduces a "confidence multiplier … expectations of returns. This mechanism amplifies the business-cycle fluctuations triggered by demand shocks (but not those …

dimensions of heterogeneity: firms specific productivity shocks and firm-market specific demand shocks. The structural parameters …

We present a new framework to identify demand and supply elasticities of agricultural commodities using yield shocks … - deviations from a time trend of output per area, which are predominantly caused by weather fluctuations. Demand is identified … impact of ethanol subsidies and mandates on world food commodity prices, quantities, and food consumers' surplus. The current …

reducing consumer confidence and consumer demand? Is there also a supply-side channel through a tightened liquidity constraint … estimate the importance of these two channels for spillovers. We first propose an index of a firm's sensitivity to a shock to … consumer confidence, based on its response to the 9/11 shock in 2001. We then construct a separate firm-level index on …

. We then describe the patterns found in the data and argue that firm and market specific demand shocks help explain a …

regarding aggregate productivity. The shock to this public signal, or "news shock," has the features of an aggregate demand … shock: it increases output, employment and inflation in the short run and has no effects in the long run. The dynamics of … the economy following an aggregate productivity shock are also affected by the presence of imperfect information: after a …