research
publications
“Information Acquisition, Efficiency, and Non-Fundamental Volatility,”
with Benjamin Hébert
Journal of Political Economy, October 2023, Volume 131, 2666–2723. Online Appendix.
“Optimal Monetary Policy in Production Networks,”
with Alireza Tahbaz-Salehi
Econometrica, May 2022, Volume 90, 1295-1336. Online Appendix.
“Optimal Monetary Policy and Disclosure with an Informationally-Constrained Central Banker,”
with Luigi Iovino and Rui Mascarenhas
Journal of Monetary Economics, January 2022, Volume 125, 151-172. Online Appendix.
“Learning over the Business Cycle: Policy Implications,”
with George-Marios Angeletos and Luigi Iovino
Journal of Economic Theory, November 2020, Volume 190, Article 105115.
“Distortions in Production Networks,”
with Saki Bigio
Quarterly Journal of Economics, November 2020, Volume 135, 2187–2253.
Online Appendix. Data and Matlab code.
“Optimal Monetary Policy with Informational Frictions,”
with George-Marios Angeletos
Journal of Political Economy, March 2020, Volume 128, 1027-1064. Online Appendix.
“Real Rigidity, Nominal Rigidity, and the Social Value of Information,”
with George-Marios Angeletos and Luigi Iovino
American Economic Review, January 2016, Volume 106, 200-227. Online Appendix.
“Predatory Trading, Stigma, and the Fed's Term Auction Facility,”
Journal of Monetary Economics, July 2014, Volume 65, 57-75. Online Appendix.
“Sentiments,”
with George-Marios Angeletos
Econometrica, March 2013, Volume 81, 739-780.
“Noisy Business Cycles,”
with George-Marios Angeletos
NBER Macroeconomics Annual 2009, Volume 24, 319-378.
“Incomplete Information, Higher-Order Beliefs and Price Inertia,”
with George-Marios Angeletos
Journal of Monetary Economics, October 2009, Volume 56, 19-37.
published comments
“Comment on Bottlenecks: Sectoral Imbalances and the US Productivity Slowdown,”
with Eugenio Piga
NBER Macroeconomics Annual 2023, Volume 38, 222-235.
“Comment on Monetary Policy Analysis when Planning Horizons are Finite,”
NBER Macroeconomics Annual 2018, Volume 33, 51-66.
working papers
“Optimal Monetary Policy with Redistribution,” with Wendy Morrison
NBER Working Paper 32921
We study optimal fiscal and monetary policy in a dynamic, general equilibrium economy with heterogeneous agents, nominal rigidities, and complete markets. Optimal monetary policy targets a state-contingent mark-up that covaries positively with a sufficient statistic for labor income inequality. In a calibrated version of the model, countercyclical earnings inequality implies countercyclical optimal markups.
“Missing Tax Instruments: Attaining Production Efficiency in Disaggregated, Production Network Economies with Nominal Rigidities,” with Alireza Tahbaz-Salehi
We study optimal fiscal and monetary policy in multi-sector, input-output economies with nominal rigidities and a rich set of fiscal instruments. We show how production efficiency can be restored with state-contingent, sector-specific tax rates. The optimal tax structure involves jointly stabilizing all prices set by sellers while generating efficient movements in after-tax prices faced by buyers.