Research
Publications in refereed journals
"The costs of macroprudential deleveraging in a liquidity trap", with Jiaqian Chen, Jesper Lindé and Karl Walentin, Review of Economic Dynamics, vol 51, pages 991-1011, 2023.
"Optimal inflation with corporate taxation and financial constraints", with Giovanni Lombardo, Caterina Mendicino and Philippe Weil, Journal of Monetary Economics, vol.95, pages 18-31, May 2018.
"Financial shocks, comovement and credit frictions", with Caterina Mendicino, Economics Letters, vol. 143, pages 20–23, June 2016.
"Monetary regime change and business cycles", with Vasco Cúrdia, Journal of Economic Dynamics and Control, vol. 37, pages 756–773, April 2013.
"Do central banks react to house prices?", with Virginia Queijo von Heideken, Journal of Money Credit and Banking, vol 45, Issue 8, pages 1659–1683, December 2013.
"Inattention, wealth inequality and equilibrium asset prices", Journal of Monetary Economics, vol. 58(2), pages 146-155, March 2011.
Working Papers
"A traffic jam theory of growth", with Philippe Weil
CEPR Discussion Paper 17304, May 2022.
Abstract
A growing empirical literature documents a non-monotonic relationship between finance and growth. We investigate this finding in a Schumpeterian endogenous-growth model with search frictions and congestion effects in credit and innovation markets. Financial development eases the financing of innovation but exacerbates congestion effects in R&D. Conversely, policies that promote R&D aggravate financial bottlenecks. Once general equilibrium feedback effects are taken into account, the interplay between the two congestion frictions generates a non-linear relationship between finance and productivity growth. We show that, for a calibration chosen to mimic the actual US economy, the interplay between credit and innovation frictions results in a negative impact of finance on growth. This impact is however quantitatively small – consistent with the observation that, in the last century, most developed economies have experienced a widespread expansion of the financial sector yet almost constant, or slowly declining, growth rates of GDP (save for financial crises, pandemics or wars).
"Liquidity, capital pledgeability and inflation redistribution" (with Paola Boel and Julian P. Dıaz)
Federal Reserve Bank of Cleveland, Working Paper No. 21-26, November 2021.
Abstract
We study the redistributive effects of expected inflation in a microfounded monetary model with heterogeneous discount factors and collateral constraints. In equilibrium, this heterogeneity leads to borrowing and lending. Model assumptions also guarantee a tractable distribution of money and capital holdings. Several results emerge from our analysis. First, in this framework expected inflation is detrimental to capital accumulation. Second, expected inflation affects borrowing and lending when collateral constraints are present, thus also inducing redistributive effects through credit. Third, we find this channel to be regressive when we calibrate our model using US data. This is because the drop in borrowers’ capital caused by inflation is larger when capital is used as collateral .
Other publications
"Financial frictions, financial regulation and their impact on the macroeconomy", with Anna Grodecka, Sveriges Riksbank Economic Review 2018:01.
"Macroeconomic effects of reducing household debt", with Magnus Jonsson, Christian Nilsson and Ingvar Strid, Sveriges Riksbank Economic Review 2016:02.
"Household indebtedness, house prices and the macroeconomy: a review of the literature", with Christian Nilsson, Dan Nyberg and Albina Soultanaeva, The Riksbank´s inquiry into the risks in the Swedish housing market, Chapter II.3, 2011.
"Numeracy, financial literacy and household finance", with Johan Almenberg, Sveriges Riksbank Economic Commentaries, 2011:03.