Monetary Policy and Macroeconomic Research
Our monetary policy and macroeconomic research focuses on national and international economic issues.
Latest Research
Incomplete Information and Irreversible Investment
Firms have incomplete information and investment is irreversible—two frictions that result in the misallocation of capital.
Evaluating Macroeconomic Outcomes Under Asymmetries: Expectations Matter
Household and firm expectations play a key role in determining the effects of asymmetries on macroeconomic outcomes.
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets
Funds flowing into stablecoins must flow out of another source.
Worker and Firm Search in the Labor Market: Evidence from Classified Advertisements
New city-level and national measures of firm and worker job searches offer insight into early 20th-century U.S. labor markets.
Reassessing Zero Lower Bound Risk: Safe Assets and Interest Rates Post-Pandemic
A higher supply of government debt since the pandemic has likely contributed to an increase in the normal level of interest rates.
What Are Empirical Monetary Policy Shocks? Estimating the Term Structure of Policy News
Monetary policy shocks contain a mixture of information about policy; a new method disentangles their components.
The Optimal Monetary Policy Response to Belief Distortions: Model-Free Evidence
Data suggest that monetary policy should ease to offset inflation over-pessimism among households.
Is It Time to Add Food-at-Home Inflation to Measures of Core Inflation?
Many of the drawbacks of including food inflation in measures of core inflation appear to have diminished since the 1970s.
Forecasting with Feelings: The Modest Link Between Consumer Sentiment and Spending
Accounting for consumer sentiment does not significantly alter forecasts of household spending.