countries with unstable demand. But this does not necessarily improve welfare in the stable demand country.

I examine the argument that a low interest rate policy can lead to "overvalued" private assets or privately created bubbles (private bubbles). Using the standard approach to bubbles, I find that a policy of a low real interest rate may support private bubbles but a policy of a low nominal...

I use a flexible price version of the Prescott (1975) hotels model to explain variations in price dispersion across goods sold by supermarkets in Chicago. The main finding is that price dispersion measures are positively correlated with proxies for demand uncertainty. I also find that price...

The standard formulation of a spot mark et subject to uncertain excess demand uses a tatonnement process that restricts trade until the market-clearing price is found. I present a model in which there is no restriction on trade during the process of the resolution of uncertainty about aggregate...