Current models fail to concurrently account for several important empirical regularities in the housing and labor markets. I augment the Diamond-Mortensen-Pissarides (DMP) search and matching model of the labor market with a housing market characterized by search and matching frictions,...

This paper uses event study analysis and synthetic control estimation analysis to explore how the trend of the risk premium changes when a country breaks its exchange rate peg. We perform abnormal return and cumulative abnormal return estimations on daily fluctuations of country spread index,...

The textbook bathtub model attributes a minor role to labor force participation. Recent empirical research shows that participation accounts for around one-third of the fluctuations in unemployment. This article outlines a technique for introducing the intermediate macroeconomics student to an...

I develop a new Keynesian model in which the central bank manages an overnight reverse repo facility, provides collateralized lending through a discount window facility, and can independently affect the quantity of reserves and the level of interest rates. Three different sets of policy rules...