Web2015; Farhi and Werning, 2016; Freixas et al., 2015; Jeanne and Korinek, 2013). Maximum limits on loan-to-value (LTV) ratios on residential mortgages have proven to be a very popular policy response (at least 60% of advanced countries have used them), since, in principle, they directly reduce mortgage demand and therefore restrain household ... WebAs shown by Farhi and Werning (2016a), future spending is more powerful—a “fiscal forward guidance puzzle”. In ongoing work we apply the ... (2016). However, as shown byWerning(2015), while incomplete markets always have an effect on the level of aggregate consumption, the way it affects

Fiscal Unions - American Economic Association

Webuse foreign currency financing to grow more quickly (Salomao and Varela 2016). As a result, the impact of debt revaluation on the local economy is particularly severe when foreign … Web[Galí-López-Salido-Vallés 2007; Coenen et al 2012; Farhi-Werning 2024] New:Heterogeneous-agents (HA) models!iMPCs are key, can be used for calibration!large and persistent Y e˙ect when de˝cit ˝nanced 3. ... [Farhi Werning 2024, Auclert Rognlie 2016] with Zt aggregate after-tax labor income Zt Z z clifford allen aon

14.454 Economic Crises

WebPreventivemonetaryandmacroprudentialpolicyresponseto anticipatedshockstofinancialstability 1stInternationalConference“FrontiersinInternationalFinanceandBanking” WebFarhi & Werning (2010) laid down the foundations for a progressive taxation of wealth and capital with the aim of building a reasoned debate on a very sensitive subject. The first … WebWe explore steady‐state inequality in an intergenerational model with altruistically linked individuals who experience privately observed taste shocks. When the welfare function depends only on the initial generation, efficiency requires immiseration: inequality grows without bound and everyone’s consumption converges to zero. We study other efficient … board of director offer letter sample