We explore two issues triggered by the crisis. First, in most advanced countries, output
remains far below the pre-recession trend, suggesting hysteresis. Second, while inflation …

Traditionally, economic growth and business cycles have been treated independently.
However, the dependence of GDP levels on its history of shocks, what economists refer to as …

Summary We move beyond Is Machine Learning Useful for Macroeconomic Forecasting? by
adding the how. The current forecasting literature has focused on matching specific …

We propose a new strategy for dissecting the macroeconomic time series, provide a
template for the business-cycle propagation mechanism that best describes the data, and …

ABSTRACT I study aggregate consumption dynamics under incomplete markets, focusing
on the relationship between consumption and the path for interest rates. I first provide a …

Recently developed HANK models, which combine Heterogeneous Agents and New
Keynesian frictions, have had a considerable impact on macroeconomics. However, due to …

We explore the transmission mechanism of income inequality to output. In the short run,
higher inequality reduces output because marginal propensities to consume are negatively …

Are business cycles mainly a response to persistent exogenous shocks, or do they instead
reflect a strong endogenous mechanism which produces recurrent boom-bust phenomena …

Credit booms are not rare, some end in a crisis (bad booms) whereas others do not (good
booms). We document that credit booms start with an increase in productivity growth, which …

This review discusses the unique features of Austrian economics and some of the recent
contributions of this school of thought. We organize these contributions in different research …