Akatsuki Sukeda

I am Akatsuki (Aki) Sukeda, a Ph.D. candidate in Economics at the University of California, Santa Cruz. My research field is Macroeconomics, with a particular interest in Monetary Policy.

I will join the London School of Economics and Political Science as an LSE fellow in Economics starting in August 2019.

Carriculum Vitae: PDF (November 2018)

Primary Field: Macroeconomics and Monetary Economics

Secondary: International Economics, Financial Economics

Expected Graduation Date: June 2019

References:

Carl Walsh (Primary): walshc@ucsc.edu

Kenneth Kletzer: kkletzer@ucsc.edu

Michael Hutchison: hutch@ucsc.edu

Alonso Villacorta: avillaco@ucsc.edu

Job Market Paper

"Credible Forward Guidance with Financial Disruption"

This paper analyzes the effectiveness of optimal incentive-compatible forward guidance at the effective lower bound (ELB) on nominal interest rates when the economy faces occasional financial disruptions. Financial disruptions make households respond less to future monetary shocks because of precautionary-saving motives and make firms respond less to future monetary shocks because the value of current profit increases. As a result, the following three results emerge. First, forward guidance affects the economy at the ELB much less strongly without changing its effect when the economy exits the ELB. Second, the effectiveness of forward guidance becomes weaker even if the central bank has perfect credibility and can commit to forward guidance with a longer horizon than the case without financial disruption. Third, since the output gap and inflation experience more significant deviation from their optimal levels at exit periods, credibility concerns make the effectiveness of optimal sustainable forward guidance even weaker.

Contact

Email: asukeda "at" ucsc.edu

Address:

Department of Economics

University of California, Santa Cruz

Engineering 2, 1156 High St.

Santa Cruz, CA 95064