International economy

High persistence is a prominent feature of price movements in U.S. housing markets, i.e., house prices grow faster this period if they grew faster last period. This paper provides two additional new insights to the literature on U.S. house price movements.

This paper develops Mean Group Distributed Lag (MGDL) estimation of impulse responses of common shocks in large panels with one or two cross-section dimensions.

Since 2007, an increase in risk or risk aversion has resulted in a U.S. dollar appreciation and greater deviations from covered interest parity (CIP). In contrast, prior to 2007, risk had no impact on the dollar, and CIP held.

This paper studies the effectiveness of forward guidance when central banks have imperfect credibility.

This paper shows that a negative global shock (rise in global risk-aversion) generates an identical drop in gross inflows and outflows.

This paper argues that asset pricing bubbles are an important source of financial instabilities.