New Research

Rios-Rull: The Great Recession and Financial Shocks

The Great Recession and Financial Shocks José-Víctor Ríos-Rull, Consultant February 2016 | Federal Reserve Bank of Minneapolis Economic Policy Paper 16-3 | With Zhen Huo A case can be made for the Great Recession being the result of a large financial shock that makes...

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Wright: Are Prices Sticky and Does It Matter?

Are Prices Sticky and Does It Matter? Randall Wright, Consultant January 2016 | Federal Reserve Bank of Minneapolis Economic Policy Paper 16-2 | With Liang Wang Many economists believe that prices are “sticky”—they adjust slowly. This stickiness, they suggest, means...

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Arellano: Fiscal Austerity during Debt Crises

Fiscal Austerity during Debt Crises Cristina Arellano, Senior Research Economist January 2016 | Federal Reserve Bank of Minneapolis Staff Report 525 | With Yan Bai This paper constructs a dynamic model in which fiscal restrictions interact with government borrowing...

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Nicolini: Stock Market Volatility and Learning

Stock Market Volatility and Learning Juan Pablo Nicolini, Senior Research Economist February 2016 | Journal of Finance, 71:1, p. 33-82 | With Klaus Adam and Albert Marcet We show that consumption-based asset pricing models with time-separable preferences generate...

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Heathcote & Perri: On the Desirability of Capital Controls

On the Desirability of Capital Controls Jonathan Heathcote, Monetary Advisor Fabrizio Perri, Monetary Advisor January 2016 | Federal Reserve Bank of Minneapolis Staff Report 523 In a standard two-country international macro model, we ask whether imposing restrictions...

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Wright: Venture Capital: A model of Search and Bargaining

Venture Capital: A Model of Search and Bargaining Randall Wright, Consultant January 2016 | Review of Economic Dynamics, 19, p. 232-246. | With Rafael Silveira This paper develops a model of the venture capital market, focusing on the search process that matches...

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