This paper presents a toolkit for generating optimal policy projections. It makes five
contributions. First, the toolkit requires a minimal set of inputs: only a baseline projection for …

We study optimal fiscal policy in an economy plunged into a deep recession characterized
by a liquidity trap, and in which the government can allocate spending both to consumption …

How should independent central banks react if pressured by fiscal policymakers? We
contrast the implications of two monetary frameworks: one, where the central bank follows a …

Bank market power shapes firm investment and financing dynamics and hence affects the
transmission of macroeconomic shocks. Motivated by a secular increase in the …

We propose a novel framework that revisits the seminal Chamley-Judd zero capital taxation
result in light of bounded rationality stemming from a finite policy planning horizon and …

Most available results on optimal decisions under partial information are derived under
“separation”. But this principle does not always hold. We derive a non-standard first order …

Motivated by a secular increase in the concentration of the US banking industry, I develop a
new macroeconomic model with oligopolistic financial intermediaries and heterogeneous …

Shall a central bank strike back when the treasury tries to break its independence? We study
an environment where only the central bank has a commitment technology to announce …

This dissertation has three independent essays. The first essay “Macro Shocks and Firm
Dynamics with Oligopolistic Financial Intermediaries” studies the macroeconomic effects of …

We analyze optimal capital and labor taxes in a model where (i) the government makes
noncontingent announcements about future policies and (ii) state-contingent deviations from …