working papers

Dual Mandate with Nominal Fiscal Policy: the case for price-level targeting

We study the implications of a ‘dual mandate’ of price and output stability in a heterogeneous agent New Keynesian (HANK) economy where fiscal policy is committed to satisfying the present value government budget constraint at all times. In this …

Monetary-Fiscal Interaction and the Liquidity of Government Debt

How does the monetary and fiscal policy mix alter households' saving incentives? And what are the resulting implications on the evolution and stabilization of the economy? To answer these questions, we build a heterogenous agents New Keynesian model …

Unwinding quantitative easing: state dependency and household heterogeneity

This paper studies the macroeconomic effect of the state dependency of central bank asset market operations and their interactions with household heterogeneity. We build a New Keynesian model with borrowers and savers in which quantitative easing and …

A tail of labor supply and a tale of monetary policy

We study the interaction between monetary policy and labor supply decisions at the household level. We uncover evidence of heterogeneous responses and a strong countercycli- cality of hours worked in the left tail of the income distribution, …

Monetary-fiscal interactions and liquidity of government debt