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Research

Publications

  1. Involuntary Unemployment and Implicit Contracts, Quarterly Journal of Economics, 98, (Supplement 1983): 107-122. Reprinted in Elgar Reference Collection. International Library of Critical Writings in Economics, (35), ed. Sherwin Rosen, 1994.
  2. Seasonalities in Security Returns: The Case of Earnings Announcements, (with Ravi Jagannathan and Aharon Ofer), Journal of Financial Economics, 21, (May 1988): 101-121.
  3. Banking Panics, Information, and Rational Expectations Equilibrium, (with Ravi Jagannathan), Journal of Finance, 43, (July 1988): 749-761.
  4. Time Consistency and Optimal Policy Design, Federal Reserve Bank of Minneapolis Quarterly Review, 12 (4), (Fall 1988): 17-33.
  5. Adverse Selection in a Model of Real Estate Lending, (with Ravi Jagannathan), 44, Journal of Finance, (June 1989): 409-508.
  6. Banking without Banking Panics or Deposit Insurance: Lessons from a Model of the U.S. National Banking System, Federal Reserve Bank of Minneapolis Quarterly Review, 13 (3), (Summer 1989): 3-36.
  7. Labor Contracts in a Model of Imperfect Competition, (with Larry Jones and Rodolfo Manuelli), 79, American Economic Review Papers and Proceedings, (1989): 358-363.
  8. Time Consistency and Policy, (with Patrick Kehoe and Edward Prescott), Modern Business Cycle Theory, ed. Robert Barro, (1989), Harvard University Press Cambridge, Mass.
  9. Price Stability and Futures Trading in Commodities, (with Ravi Jagannathan and Larry Jones), Quarterly Journal of Economics, 105, (2) (May 1990): 527-534.
  10. International Coordination of Fiscal Policy in Limiting Public Good Economies, (with Patrick Kehoe), Journal of Political Economy, 98 (3) (June 1990): 617-636.
  11. The Simple Analytics of Commodity Futures Markets: Do They Stabilize Prices? Do They Raise Welfare? (With Ravi Jagannathan), Federal Reserve Bank of Minneapolis Quarterly Review, 14 (3), (Summer 1990): 12-26.
  12. Sustainable Plans, (with Patrick Kehoe), Journal of Political Economy, 98 (4) (August 1990): 783-802. Reprinted in Monetary and Fiscal Policy, eds. Torsten Persson and Guido Tabellini, (1999) MIT Press Cambridge, Mass.
  13. Playing by the Rules: A Proposal for Federal Budget Reform, (with Preston Miller), Federal Reserve Bank of Minneapolis 1990 Annual Report.
  14. Optimal Fiscal and Monetary Policy: Some Recent Results, (with Lawrence Christiano and Patrick Kehoe), Journal of Money, Credit, and Banking, 23, (August 1991): 519-539. Reprinted in Business Cycles, Political Economy and Growth, eds. Alex Cukierman, Zvi Hercowitz and Leon Leiderman, 1992, MIT Press, Cambridge, Mass.
  15. Vintage Human Capital, Growth, and the Diffusion of New Technology, (with Hugo Hopenhayn), Journal of Political Economy, 99 (December 1991): 1142-1165.
  16. Banking Crises. In The New Palgrave Dictionary of Money and Finance, (1992), ed. Peter Newman, Stockton Press.
  17. Uninsured Deposit Systems. In The New Palgrave Dictionary of Money and Finance, ed. Peter Newman, (1992), Stockton Press.
  18. How the U.S. Treasury Should Auction Its Debt, (with Robert Weber). Federal Reserve Bank of Minneapolis Quarterly Review, 16 (4) (Fall 1992): 3-12.
  19. Sustainable Plans and Mutual Default, (with Patrick Kehoe), Review of Economic Studies, 60 (January 1993): 175-195.
  20. Sustainable Plans and Debt, (with Patrick Kehoe), Journal of Economic Theory, 61, (2) (December 1993): 230-61.
  21. Optimal Fiscal Policy in a Business Cycle Model, (with Lawrence Christiano and Patrick Kehoe), Journal of Political Economy, 102, (August 1994): 617-652.
  22. Inflation, Growth, and Financial Intermediation, (with L. Jones and R. Manuelli). Federal Reserve Bank of Minneapolis Quarterly Review, 19 (4) (Fall 1995): 18-32. Reprinted in Federal Reserve Bank of St. Louis Economic Review, May/June 1996.
  23. Inside Money, Outside Money and Short Term Interest Rates, (with Lawrence Christiano and Martin Eichenbaum), Journal of Money, Credit and Banking, 27, (4) (Part 2 Nov. 1995): 1354-86.
  24. Policy Analysis in Business Cycle Models, (with Lawrence Christiano and Patrick Kehoe), in Frontiers of Business Cycle Research, ed. Thomas Cooley, (1995), Princeton University Press, Princeton, NJ.
  25. Optimality of the Friedman Rule in Economies with Tax Distortions, (with Lawrence Christiano and Patrick Kehoe), Journal of Monetary Economics, 37 (2) (April 1996): 203-223.
  26. Why are Representative Democracies Fiscally Irresponsible? (with Harold Cole), Cuardenos Economicos, 62 (1996): 169-178.
  27. The Economics of Split Voting in Representative Democracies, (with Larry Jones and Ramon Marimon), American Economic Review, 87, (December 1997): 957-976.
  28. Expectation Traps and Discretion, (with Lawrence Christiano and Martin Eichenbaum), Journal of Economic Theory, 81, (2), (August 1998): 462-492.
  29. Nobel Laureate Robert E. Lucas, Jr.: Architect of Modern Macroeconomics, Journal of Economic Perspectives, Winter 1998, vol. 12, pp. 171-186. Reprinted in Federal Reserve Bank of Minneapolis Quarterly Review 23 (2) (Spring 1999): 2-12.
  30. Asking the Right Questions About the IMF, (with Patrick Kehoe), Federal Reserve Bank of Minneapolis Annual Report, 1998.
  31. Taxing Capital Income: A Bad Idea, (with Andrew Atkeson and Patrick Kehoe), Federal Reserve Bank of Minneapolis Quarterly Review 23 (3) (Summer 1999): 3-11.
  32. Optimal Fiscal and Monetary Policy, (with Patrick Kehoe), in Handbook of Macroeconomics, Volume 1C, John Taylor and Mike Woodford, Eds. North Holland, Amsterdam, 1999.
  33. A Reconsideration of the Problem of Social Cost: Free Riders and Monopolists, (with Larry Jones), Economic Theory, 16 (1), (July 2000): 1-22.
  34. Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem? (with Patrick Kehoe and Ellen McGrattan), Econometrica, 68, (5), (September 2000): 1151–1179.
  35. Limits of Markets and Limits of Governments: An Introduction to a Symposium on Political Economy, Journal of Economic Theory, 94 (1), (September 2000): 1–6.
  36. Accounting for the Great Depression, (with Patrick J Kehoe and Ellen McGrattan), American Economic Review Papers and Proceedings 92 (2), (May 2002): 22-27. Reprinted in Federal Reserve Bank of Minneapolis Quarterly Review 27 (2) (Spring 2003): 2-12.
  37. Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates? (with Patrick Kehoe and Ellen McGrattan), Review of Economic Studies, 69 (3) (July 2002): 533-564.
  38. How Severe is the Time Inconsistency Problem in Monetary Policy? (with Stefania Albanesi and Lawrence Christiano), in Advances in Economic Theory and Econometrics, Cambridge University Press, edited by Matthias Dewatripont, Lars Hansen and Stephen Turnovsky (2003). Reprinted in Federal Reserve Bank of Minneapolis Quarterly Review 27 (2) (Summer 2003): 2-18.
  39. Expectation Traps and Monetary Policy, (with Stefania Albanesi and Lawrence Christiano), Review of Economic Studies, 70 (4) (October 2003): 715-741.
  40. Hot Money, (with Patrick Kehoe), Journal of Political Economy, 111 (6) (December 2003): 1262-1292.
  41. Strategic Delegation in Monetary Unions, (with Larry Jones and Ramon Marimon), The Manchester School, 72 (s1), (September 2004): 19-33.
  42. Financial Crises and Herds, (with Patrick Kehoe), Journal of Economic Theory, 119 (1), (November 2004): 19-33.
  43. Sudden Stops and Output Drops, (with Patrick Kehoe and Ellen McGrattan), American Economic Review Papers and Proceedings, 95 (2) (May 2005): 381-387.
  44. Spectral Methods in Business Cycle Accounting, (with Patrick Kehoe and Ellen McGrattan), Revista de Economia, 12, (2), (November 2005): 5-18.
  45. Modern Macroeconomics in Practice: How Theory is Shaping Policy, (with Patrick Kehoe), Journal of Economic Perspectives, 20 (4), (Fall 2006): 3-28.
  46. Business Cycle Accounting, (with Patrick Kehoe and Ellen McGrattan), Econometrica, 75 (3), (May 2007): 781-836.
  47. The Heterogeneous State of Modern Macroeconomics: A Reply to Robert Solow, (with Patrick Kehoe), Federal Reserve Bank of Minneapolis Staff Report 399, October 2007; Comments, Journal of Economic Perspectives, 22 (1), (Winter 2008): 247-49.
  48. On the Need for Fiscal Constraints in a Monetary Union, (with Patrick Kehoe), Journal of Monetary Economics, 54 (8) (November 2007): 2399-2408.
  49. Time Inconsistency and Free-Riding in a Monetary Union ,(with Patrick Kehoe), Journal of Money, Credit, and Banking. 40 (7), (October 2008): 1329-55.
  50. Are Structural VARs with Long-Run Restrictions Useful in Developing Business Cycle Theory? (with Patrick Kehoe and Ellen McGrattan), Journal of Monetary Economics, 55 (8), (November 2008): 1337-52. 
  51. New Keynesian Models: Not Yet Useful for Policy Analysis, (with Patrick Kehoe and Ellen McGrattan), American Economic Journal: Macroeconomics, 1 (1) (January 2009): 242-266.
  52. Sophisticated Monetary Policies, (with Andrew Atkeson and Patrick Kehoe), Quarterly Journal of Economics (February 2010), 125 (1): 47–89.
  53. Thoughts on the Federal Reserve’s Exit Strategy, Economic Policy Paper, Federal Reserve Bank of Minneapolis, March 2010.
  54. Damage Control? Analyzing Policies to Repair Credit Markets, (with Ali Shourideh and Ariel Zetlin Jones) Economic Policy Paper, Federal Reserve Bank of Minneapolis, March 2010.
  55. What Do We Need Banks For? (with Chris Phelan), Economic Policy Paper, Federal Reserve Bank of Minneapolis, May 2012
  56. The “Banks” We Do Need, (with Christopher Phelan), Economic Policy Paper, Federal Reserve Bank of Minneapolis, January 2013.
  57. On the Social Usefulness of Fractional Reserve Banking, (with Christopher Phelan), Journal of Monetary Economics. 65 (July 2014): 1–13.
  58. Too Correlated to Fail, (with Christopher Phelan), Economic Policy Paper, Federal Reserve Bank of Minneapolis, July 2014
  59. A Macroeconomist’s Wish list of Financial Data, Systemic Risk and Macro Modeling, edited by Markus Brunnermeier and Arvind Krishnamurthi, National Bureau of Economic Research, August 2014.
  60. Reputation and Persistence of Adverse Selection in Secondary Loan Markets, (with Ali Shourideh, and Ariel Zetlin-Jones), American Economic Review, 104(12) (December 2014): 4027-70.
  61. The Optimal Extraction of Exhaustible Resources, (with Lawrence Christiano), Economic Policy Paper, Federal Reserve Bank of Minneapolis, December 2014.
  62. On the Ethics of Redistribution, (with Christopher Phelan) Economic Policy Paper, Federal Reserve Bank of Minneapolis, July 2015.
  63. A Proposal To Eliminate the Distortions Caused by Bailouts (with Patrick Kehoe) Economic Policy Paper, Federal Reserve Bank of Minneapolis, January 2016.
  64. Bailouts, Time Inconsistency and Optimal Regulation: A Macroeconomic View” with Patrick Kehoe. American Economic Review, 106 (9), September 2016, pp. 2458-2493.
  65. Accounting for Business Cycles with Wedges (with Pedro Brinca, Patrick Kehoe and Ellen McGrattan) September 2016 in Handbook of Macroeconomics, eds. John Taylor and Harald Uhlig, Elsevier.
  66. A Journey Down the Slippery Slope to the European Crisis: A Theorist’s Guide, with Alessandro Dovis and Patrick Kehoe, April 2017 in Rules for International Monetary Stability: Past, Present, and Future, edited by Michael Bordo and John Taylor, Hoover Institution Press.
  67. Reforming the European Monetary Union, with Alessandro Dovis and Patrick Kehoe, Economic Policy Paper, May 2017, Federal Reserve Bank of Minneapolis.

Papers Submitted for Publication

  1. On the Optimality of Financial Repression, (with Alessandro Dovis and Patrick Kehoe), submitted to the Journal of Political Economy.
  2. Rethinking Optimal Currency Areas, (with Alessandro Dovis and Patrick Kehoe) submitted to American Economic Review.
  3. Financialization in Commodity Markets, (with Lawrence Christiano) submitted to Journal of Political Economy.

Working Papers

  1. Moral Hazard, Reputation, and Fragility in Credit Markets, (with Ali Shourideh and Ariel Zetlin Jones). Working Paper, University of Minnesota.
  2. Financial Frictions over the Business Cycle, (with Lawrence Christiano and Patrick Kehoe). Working Paper, University of Minnesota.
  3. The Behavior of Small and Large Firms over the Business Cycle, (with Lawrence Christiano and Patrick Kehoe). Working Paper, University of Minnesota
  4. Optimal Disability Insurance, (with Hugo Hopenhayn and John Rust). Working Paper, University of Minnesota.
  5. Facts and Myths about the Financial Crisis of 2008, (with Lawrence Christiano and Patrick Kehoe). Federal Reserve Bank of Minneapolis Working Paper 666.
  6. Vintage Human Capital, Growth, and Structural Unemployment, (with H. Hopenhayn). Research Department, Federal Reserve Bank of Minneapolis Working Paper 326.
  7. On the Random Walk Theory of Optimal Taxation, (with L. Christiano and P. Kehoe).