Research

Abstract: While central banks have demonstrated policy coordination to address global economic crises, such as the Global Financial Crisis or the COVID-19 pandemic, the literature has difficulties finding a significant gain from cooperation. I revisit the question through the lens of household heterogeneity. I design a Two-Agent-New-Keynesian model of two interdependent economies and assess the role of household heterogeneity in the gains from monetary policy cooperation. I find that the gains from cooperating are higher when heterogeneity is introduced, compared to the usual representative agent framework. The additional gains generated by household heterogeneity decrease with the trade elasticity.

Abstract: While central banks have demonstrated policy coordination to address global economic crises, such as the Global Financial Crisis or the COVID-19 pandemic, the literature has difficulties finding a significant gain from cooperation. I revisit the question through the lens of household heterogeneity. I design a Two-Agent-New-Keynesian model of two interdependent economies and assess the role of household heterogeneity in the gains from monetary policy cooperation. I find that the gains from cooperating are higher when heterogeneity is introduced, compared to the usual representative agent framework. The additional gains generated by household heterogeneity decrease with the trade elasticity.

Abstract: While central banks have demonstrated policy coordination to address global economic crises, such as the Global Financial Crisis or the COVID-19 pandemic, the literature has difficulties finding a significant gain from cooperation. I revisit the question through the lens of household heterogeneity. I design a Two-Agent-New-Keynesian model of two interdependent economies and assess the role of household heterogeneity in the gains from monetary policy cooperation. I find that the gains from cooperating are higher when heterogeneity is introduced, compared to the usual representative agent framework. The additional gains generated by household heterogeneity decrease with the trade elasticity.

Abstract: The project studies how the frequency of macroeconomic data releases affects the quality of information available to economic agents. Using a state‑space framework, it compares forecast performance when agents observe monthly versus quarterly signals, and quantifies the trade‑off between timeliness and noise. Signal noise is estimated from revisions in the BLS Current Employment Survey, allowing an empirical evaluation of the costs and benefits of lower‑frequency data publication.