In response to the COVID-19 pandemic, large parts of the economy were locked down and,
as a result, households' income risk rose sharply. At the same time, policy makers put …

In response to the COVID-19 pandemic, large parts of the economy were locked down and,
as a result, households' income risk rose sharply. At the same time, policy makers put …

We theoretically and quantitatively analyze the impact of fiscal and monetary stimulus during
and after the 2020 Covid recession on output, inflation, and house prices. Our theoretical …

Stabilization and redistribution are intertwined in a model with heterogeneity, imperfect
insurance, and nominal rigidity—making fiscal and monetary policy inextricably linked for …

During the COVID-19 pandemic, governments in the euro area sharply increased spending
while the European Central Bank eased financing conditions. We use this episode to assess …

We analyze the impact of fiscal and monetary stimulus in an economy with mortgage debt,
where inflation redistributes from savers to borrowers. We show theoretically that fiscal …

Central banks operating under exchange rate pegs and free capital flows lack the autonomy
to set policy rates. We show this constraint is not absolute when financial assets and central …

We set-up a two-sector New Keynesian model with input-output linkages to study the
persistently high inflation during the post-COVID-19 period. We include multiple shocks as …

This paper studies the local determinacy requirements and the effects of a money-financed
fiscal stimulus under fiscal stress in a canonical New Keynesian model. We consider three …

When taxes do not sufficiently adjust to government debt levels, the Fiscal Theory of the
Price Level predicts that other variables, such as inflation and output gap, must adjust to …