Research

Selected Publications

1. The Inflation Bias under Calvo and Rotemberg Pricing (with Campbell Leith) (Journal of Economic Dynamics and Control, Volume 73, December 2016, Pages 283–297)

Main message: the choice of two workhorse models of nominal inertia - price contracts of random duration Calvo (1983) and price adjustment costs Rotemberg (1982) - to generate a meaningful role for monetary policy in New Keynesian models is not innocuous, when the inherent nonlinearities are taken seriously.

2. Optimal Time-Consistent Monetary, Fiscal and Debt Maturity Policy (with Eric Leeper and Campbell Leith ) (Journal of Monetary Economics , accepted)

Main message: The level of debt and its maturity structure have drastic effects on the inflation bias in New Keynesian models, and the resultant debt stabilization bias radically changes the response to shocks.

• Earlier version: NBER Working Paper (March 2019)

• Online appendix

3. Commitment or discretion? An empirical investigation of monetary policy preferences in China (with Yue Zhang and Weihong Sun)(Economic Modelling, Volume 85, February 2020, Pages 409-419)

4. Monetary–Fiscal Policy Regime and Macroeconomic Dynamics in China (with Weihong Sun and Long Chang)(Economic Modelling , accepted)

Working papers

1. Search Models of Money: Recent Advances

Main message: the Lagos and Wright (2005) monetary search model is flexible enough to deal with numerous issues where money plays an essential role.

Work in progress

1. The Monetary Policy Implications of Inflation Risk in New Keynesian Models (with Michael Hatcher) (first draft coming soon)

2. Optimal Monetary Policy When Money Is Essential and Its Distribution Is Non-degenerate

3. Fiscal Policy in a New Keynesian Model with an Electoral Cycle (with Campbell Leith)

4. Fiscal stimulus versus Forward Guidance When Unemployment is Deep and Persistent. (with Campbell Leith)

5. Designing an Interest Rate-Based Monetary Policy Framework for China