We study the multifaceted effects and persistence of trade policy shocks on financial markets in a structural vector autoregression. The model is identified via event day heteroskedasticity. We find that restrictive US trade policy shocks affect US and international stock prices heterogeneously,...

This chapter looks at US household sector micro data since 1989, to explore the relation between income inequality and financial fragility from a macro perspective. In contrast with a portfolio (and wealth inequality) approach to household financial instability, which focuses on the investments...