The squeeze in US dollar liquidity that emerged with the global financial crisis highlighted the risks associated with the current global financial system. Asia was adversely affected by the crisis not only because of its dependence on trade, but also because of its heavy reliance on the US...

This paper shows that standard empirical methods for estimating log-linearized consumption Euler equations cannot successfully uncover structural parameters like the coefficient of relative risk aversion from a dataset of simulated consumers behaving exactly according to the standard model...

This paper compares the dynamics of two general equilibrium models of endogenous growth in which agents have comparison utility In the inward-looking economy individuals care about how their consumption in the current period compares to their own consumption in the past (one way to describe this...

This paper examines the relationship between household balance sheets consumer purchases and expectations We find robust empirical relationships between balance sheet measures and spending but we do find that unemployment expectations are robustly correlated with spending We then construct a...