In a sticky-price model where firms finance their production inputs, there is both a lower and an upper bound on the central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper shows that real wage rigidities decrease this upper...

Deteriorating economic conditions in late 2008 led the Federal Reserve to lower the target federal funds rate to near zero, inject liquidity into the financial system through novel facilities, and engage in large scale asset purchases. The combination of conventional and unconventional policy...

This paper develops a financial mechanism which integrates housing and the real economy through housing-secured debt. In this environment, movements in home prices are amplified through both borrowers and banks' balance sheets, leading to a self-reinforcing credit/liquidity crunch. When placed...

Which groups of elected officials should be in charge of decisions about the imposition of lockdowns and other social distancing rules? People throughout the UK have debated this issue since the start of the pandemic. When central government, local governments, and devolved administrations all...