This paper incorporates diagnostic expectations into a general equilibrium macroeconomic
model with a financial intermediary sector. Diagnostic expectations are a forward-looking …

We develop a model of financial crises with both a financial amplification mechanism, via
frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity …

We construct a novel dataset of sector-level US Treasury holdings, covering the majority of
the market. Using this dataset, we estimate maturity-specific demand functions and …

I show that accounting for foreign investor base differences helps explain the heterogeneous
influence of the Global Financial Cycle on sovereign borrowing of emerging market …

We introduce a dynamic bank theory featuring delayed loss recognition and a regulatory
capital constraint, aiming to match the bank leverage dynamics captured by Tobin's Q. We …

Using a century of data, we show that Treasury convenience yield and inflation comove
positively during the inflationary 1970s-1980s, but negatively pre-WWII and post-2000. An …

Matched transaction-level, credit-registry, and survey-based data reveal that consumers on
average form excessively high (low) income expectations relative to ex-post realizations …

We develop a methodology that utilizes deep learning to simultaneously solve and estimate
canonical continuous-time general equilibrium models in financial economics. We illustrate …

Monetary policy can promote financial stability and improve household welfare. We consider
a macro model with a financial sector in which banks do not actively issue equity, output and …

Purpose The purpose of the study is to investigate the correlation between credit supply to
government and credit supply to the private sector to determine whether there is a crowding …