Since the Eurozone debt crisis, I have worked on several papers related to coordination of monetary and fiscal policies in Europe.
The effect of the European Central Bank's asset purchase programmes on Spain's public finances, with Pablo Aguilar, Mario Alloza, Samuel Hurtado, and Jaime Martínez Martín (Banco de España). Conditionally accepted at International Journal of Central Banking.
Latest English version, April 2025.
English version: Occasional Paper 2409 (Bank of Spain), March 2024.
Spanish version: Documento Ocasional 2409 (Banco de España), March 2024.
The term structure of interest rates in a heterogeneous monetary union, with Galo Nuño (Banco de España) and Carlos Thomas (Banco de España). Forthcoming August 2025, Journal of Finance 80(4).
Journal of Finance (Early view), May 2025.
Author's final version, including online appendices, August 2024.
Replication programs , September 2024.
BIS WP1165, February 2024.
Banco de España WP2223, June 2022.
Seminar slides, May 2023.
Fiscal councils: A first step towards fiscal delegation in Europe?, with Henrique S. Basso (Banco de España). Chapter 16 of Independent Fiscal Councils: Watchdogs or Lapdogs? (2018), CEPR e-book, edited by Roel Beetsma and Xavier Debrun.
Independent Fiscal Councils: Watchdogs or Lapdogs? (CEPR, 2018).
Chapter 16 (Basso and Costain, 2018).
Fiscal policy delegation in the European context, with Henrique S. Basso (Banco de España).
Banco de España Research Update, Fall 2016, pp. 9-14.
Fiscal delegation in a monetary union: Instrument assignment and stabilization properties, with Henrique S. Basso (Banco de España).
Bank of Spain Working Paper 1710, March 2017.
Seminar slides, June 2017.
Fiscal delegation in a monetary union with decentralized public spending, with Henrique S. Basso (Banco de España).
CESifo Economic Studies 62 (2), pp. 256-288, June 2016.
The role of fiscal delegation in a monetary union: a survey of the political economy issues, with Beatriz de Blas (Univ. Autónoma de Madrid).
Economic Analysis Working Paper 11/2012, Univ. Autónoma de Madrid, May 2012.
Smoothing shocks and balancing budgets in a currency union, with Beatriz de Blas (Univ. Autónoma de Madrid).
Moneda y Crédito 234, pp. 37-91, September 2012.
In several papers, I have studied costly or error-prone decision-making. Anton Nakov and I began by applying these models to nominal rigidity of retail prices.
Recent advances in solving rational inattention and control cost models.
Slides, July 2025.
Python programs: Jupyter notebook format , July 2025.
Models of price setting and inflation dynamics: A summary, with Anton Nakov (ECB).
SUERF Policy Brief 981, September 2024.
Models of price setting and inflation dynamics, with Anton Nakov (ECB). Chapter 10 in Research Handbook on Inflation, edited by Guido Ascari (Univ. of Pavia) and Riccardo Trezzi (Univ. of Lausanne). Edward Elgar Publishing.
Bank of Spain Occasional Document 2416, May 2024.
Control costs, rational inattention, and retail price dynamics, with Anton Nakov (ECB).
Manuscript, September 2021..
Seminar slides, September 2019.
Errors as a source of macroeconomic frictions, with Anton Nakov (ECB).
Logit price dynamics, with Anton Nakov (ECB).
Journal of Money, Credit and Banking 51 (1), pp. 43-78, January 2019.
Author's final version (including computational appendix), July 2018.
CEPR Discussion Paper 10731, July 2015.
Seminar slides, October 2014.
Programs, May 2015.
Precautionary price stickiness, with Anton Nakov (ECB).
Journal of Economic Dynamics and Control 58, pp. 218-234, September 2015.
Programs, July 2013.
Distributional dynamics under smoothly state-dependent pricing, with Anton Nakov (ECB).
Journal of Monetary Economics 58 (6-8), pp. 646-665, Sept.-Nov. 2011.
Programs, August 2011.
Price adjustments in a general model of state-dependent pricing, with Anton Nakov (ECB).
Journal of Money, Credit and Banking 43 (2-3), pp. 385-406, March-April 2011.
Programs, June 2010.
Subsequently, we have also applied models of costly, error-prone decisions to the labor market.
Flattening of the Phillips curve under state-dependent prices and wages, with Anton Nakov (ECB) and Borja Petit-Zarzalejos (CUNEF).
Economic Journal 132(642), pp. 546-581. February 2022.
ECB Working Paper 2272, April 2019.
Seminar slides, November 2018.
Price and wage setting when accurate decisions are costly: Implications for monetary policy transmission, with Anton Nakov (ECB).
ECB Research Bulletin no. 59, June 2019.
Costly decisions and sequential bargaining.
Bank of Spain Working Paper 1729, August 2017.
Seminar slides, July 2017.
Programs, July 2017.
Much of my early research was focused on search and matching models of the labor market.
Employment fluctuations in a dual labor market, with Juan Francisco Jimeno and Carlos Thomas.
Bank of Spain Working Paper 1013, April 2010.
Replication programs, 2011: simulprograms.zip, simul_unified.zip, README_CJT.pdf
Employment fluctuations with downward wage rigidity, with Marcel Jansen (Univ. Autónoma de Madrid).
Scandinavian Journal of Economics 112, pp. 782-811, December 2010.
Fluctuaciones del empleo en un mercado de trabajo con contratación dual, with Juan Francisco Jimeno and Carlos Thomas (Banco de España).
English version: Economic Bulletin (Banco de España) 04/2010, pp. 129-138, April 2010.
Spanish version: Boletín Económico (Banco de España) 03/2010, pp. 61-70, March 2010.
Wage, inflation, and employment dynamics with labour market matching, with Kai Christoffel, Gregory de Walque, Keith Kuester, Tobias Linzert, Stephen Millard, and Olivier Pierrard.
Bank of Spain Working Paper 918, May 2009.
Business cycles, unemployment insurance, and the calibration of matching models, with Michael Reiter (Institute for Advanced Studies, Vienna).
Journal of Economic Dynamics and Control 32, pp. 1120-1155, April 2008.
On the relevance of saving for labor market fluctuations, with Michael Reiter (Institute for Advanced Studies, Vienna).
Manuscript, August 2007.
Stabilization versus insurance: welfare effects of procyclical taxation under incomplete markets, with Michael Reiter (Institute for Advanced Studies, Vienna).
Univ. Pompeu Fabra Economics Working Paper 890, May 2005.
On the quantitative importance of wage bargaining models.
Univ. Pompeu Fabra Economics Working Paper 262, January 1998.
Unemployment insurance with endogenous search intensity and precautionary saving.
Univ. Pompeu Fabra Economics Working Paper 243, November 1997.
A note on wage bargaining in matching models.
Manuscript, March 1996.
Another recurring theme of my research is how strategic complementarities may cause macroeconomic and financial instability.
Macroprudential theory: Advances and challenges, with Henrique S. Basso (Banco de España).
Financial Stability Journal (Revista de Estabilidad Financiera) 31, pp. 27-42, November 2016.
Multiple outcomes of speculative behavior in theory and in the laboratory, with Frank Heinemann and Peter Ockenfels.
Manuscript, June 2007.
A herding perspective on global games and multiplicity.
B.E. Journal of Theoretical Economics 7 (1), Article 22, June 2007.
On payoff heterogeneity in games with strategic complementarities, with Antonio Ciccone (University of Mannheim).
Oxford Economic Papers 56, pp. 701-713, October 2004.
Computing business cycles with endogenous risk, with Michael Reiter (Institute for Advanced Studies, Vienna).
Manuscript, March 2001.
A simple model of multiple equilibria based on risk.
Univ. Pompeu Fabra Economics Working Paper 407, July 1999.
The battle of the box: A two-agent rational choice model of conflict and property rights.
Manuscript, June 1992.