Andres Blanco
I will join the Atlanta Fed as a Research Economist and Associate Advisor in June.
I will also be a visiting professor at Emory University.
Email: julioablanco84@gmail.com
I am a macroeconomist working on the aggregate implications of frictions at the micro-level. My research agenda aims to answer policy-relevant questions by providing measurements of new facts, developing theories, and testing their quantitative relevance. I study: (i) the role of price-setting for inflation dynamics and monetary policy, (ii) the role of inflation in labor markets, and (iii) the role of investment frictions for aggregate capital dynamics and macroeconomic outcomes.
Working papers
Nominal Devaluations, Inflation, and Inequality (with Andres Drenik and Emilio Zaratiegui)
Across countries, inequality falls after large devaluations within the context of a surge of inflation. Using a novel administrative dataset covering the 2002 Argentinean devaluation, we show how labor mobility and lack of union coverage of high-income workers account for the drop in inequality.
The Macroeconomics of Partial Irreversibility (with Isaac Baley) R&R at Review of Economic Studies
We investigate the macroeconomic effects of partially irreversible investment arising from a wedge between the buying and selling price of capital and apply the theory to study corporate tax reforms. Corporate income tax cuts improve the allocation of capital, decrease aggregate Tobin's q, and slow down capital fluctuations.
A Theory of Non-Coasean Labor Markets (with Andres Drenik, Christian Moser, and Emilio Zaratiegui) Reject and Resubmit at QJE
We develop a theory of non-Coasean labor markets with search frictions, idiosyncratic and aggregate shocks, sticky wages, and two-sided lack of commitment.
The Dynamics of Large Inflation Surges (with Pablo Ottonello and Tereza Ranosova) R&R at Review of Economics and Statistics
We empirically characterize episodes of large inflation surges over inflation, short-run inflation expectations, long-run inflation expectations, and fiscal and monetary policies. Our findings highlight the challenges monetary authorities face in avoiding persistent inflation dynamics following large inflation surges.
Nonlinear Inflation Dynamics in Menu Cost Economies (with Corina Boar, Callum Jones, and Virgiliu Midrigan)
We show that canonical menu cost models suffer important shortcomings. We resolve them by extending the standard multi-product menu cost model along two dimensions: strategic complementarities are at the firm and products sold by a firm are imperfect substitutes.