…precautionary saving so consumption grows faster than one would guess given the real interest rate. In currently popular models with financial frictions, firm specific risk is extremely important. It affects…

…Europe. One reason for this lack of mobility could be the high cost of college, especially among top schools. According to the Harvard financial aid website, tuition and fees come…

…rates easier? Does the lack of financial reform cause the Fed rate to seem stuck at the zero lower bound? Can the Fed rate rise without good financial reform? How…

…and about 1.3% of the European Union’s total output. But the global financial crisis demonstrated how financial linkages across sectors and countries can disrupt economic activity no matter what their…

…is nonsense to suggest that DSGE models cannot incorporate the financial sector or a financial crisis, academics tend to avoid addressing why some of the multitude of work now going…

by Joseph Joyce Global Volatility, Domestic Markets Unlike the global financial crisis of 2008-09, the current disruption in the financial markets of emerging market nations was anticipated. The “taper tantrum”…

…crises. These research papers find that domestic asset prices respond to international financial flows. This makes it harder to insulate the domestic financial markets from foreign markets, and leaves these…

…to designate a financial institution systemically important and dangerously large and order the institution to pare down. And including that most experts, including those from the finance industry, believe that…

…in the worst financial crisis in 80 years. We know that excessive size and interconnectedness promotes risky behavior that can take down our economy—and yet, today, eight years after that…