Noushin Pouraghaei

This looks like a must-read!

"Inflation and monetary policy in medium-sized New Keynesian DSGE models" by Günter Coenen, Falk Mazelis, Roberto Motto, Annukka Ristiniemi, Frank Smets, Anders Warne, and Raf Wouters.

www.ecb.europa.eu/pub/pdf/scpw...

Exploring the evolving significance of different production sectors within the US economy and providing methods for estimating and forecasting these shifts, from Andrew Foerster, Andreas Hornstein, Pierre-Daniel Sarte, and Mark W. Watson www.nber.org/papers/w34338

The inability of households to share risks across states of nature or to smooth consumption over time is a form of resource misallocation. A new study quantifies this misallocation, from David R. Baqaee and Ariel Burstein https://www.nber.org/papers/w34233

“Hope is the expectation of a good that is not certain” (Kant, Anthropologie in pragmatischer Hinsicht 7:255). Read with rational expectations in macroeconomics, agency needs beliefs coherent with structure and resilient horizons for coordination and growth.

"People can see status without seeking status" Per Engzell. Research into social stratification presents a puzzle. On the one hand, across social strata, people agree on a hierarchy of prestige between occupations. On the other, they differ widely in the extent to which they seek social advancement for themselves or their children. If occupational values were shared, we would expect differences in status seeking to be smaller. I resolve this puzzle by distinguishing between consensus beliefs--what we think 'most others value--and what we ourselves value. From this, I sketch a model of status alignment showing how differing preferences shape taste for status versus other attributes. I contrast this with dominant theories that attribute social reproduction to status maintenance: the desire to avoid downward social mobility. A novel empirical test using Swedish survey data shows that status alignment offers the most consistent explanation and best model fit when mothers are asked to evaluate 82 occupations for their child. Across social strata, mothers hold accurate beliefs about what others want, but differ in what they want for their child. Status alignment, not status maintenance, drives social reproduction.

Happy to be in Amsterdam today to present some work that bites the hand that feeds me

In macroeconomics the representative agent is often seen as a technical convenience. Read through Husserl on intentionality, Zahavi on the minimal self, and Schutz on typifications, it becomes a fragile form of subjectivity that unsettles the boundaries of agency.

Highly recommended!

"The ‘missing intercept’ problem with going from micro to macro" by Benjamin Moll and Oliver Hanney.

voxdev.org/topic/method...

Recently accepted to #REStud, "The impact of EITC on education, labor market trajectories, and inequalities," from Albertini, Poirier and Terriau:

www.restud.com/the-impact-o...

#econsky

From Public Labs to Private Firms: Magnitude and Channels of Local R&D Spillovers* Abstract. Introducing a new measure of scientific proximity between private firms and public research groups and exploiting a multi-billion euro financing

Recently accepted by #QJE, “From Public Labs to Private Firms: Magnitude and Channels of Local R&D Spillovers,” by Bergeaud (@abergeaud.bsky.social), Guillouzouic (@arthurgzouic.bsky.social), Henry, and Malgouyres: doi.org/10.1093/qje/...

N. Gregory Mankiw, Robert M. Beren Professor of Economics at Harvard University, presented the 2025 Martin Feldstein Lecture on "The Fiscal Future." https://www.youtube.com/watch?v=B916t3od8fM

Worth thinking about!

"Optimal Monetary Policy for the Masses" by James Bullard and Riccardo DiCecio.

"We study nominal GDP targeting as optimal monetary policy in a simple and stylized model with a credit market friction."

www.stlouisfed.org/publications...

A very valuable review of agent-based modeling!

"Agent-Based Modeling in Economics and Finance: Past, Present, and Future" by Robert L. Axtell and J. Doyne Farmer

www.aeaweb.org/articles?id=...

Characterizing long-run comparative statics by showing that balanced growth paths are equilibria of static economies where capital is an intermediate with an endogenous markup, from David Baqaee and Hannes Malmberg https://www.nber.org/papers/w33504

It's high time to have another look at interesting papers like this one!

"The macroeconomic stabilization of tariff shocks: What is the optimal monetary response?" by Paul R. Bergin and Giancarlo Corsetti.

www.sciencedirect.com/science/arti...

A new model of collusion in the labor market finds employer cartels fix a wage ceiling and harm to workers large in slack or concentrated markets or if combined with product market collusion, from Axel Gottfries and Gregor Jarosch https://www.nber.org/papers/w33501

Food for thought!

"A Neoclassical Model of the World Financial Cycle" by Yan Bai, Patrick J. Kehoe, Pierlauro Lopez, and Fabrizio Perri

www.nber.org/system/files...

Private money? Should the government be so heavily involved in our monetary system? Do we even need a central bank? These are questions discussed in section 9 of my new “Money and Banking” chapter:

eml.berkeley.edu/~jsteinsson/...

Evidence on the usage and preferences of the Federal Open Market Committee regarding the balance between rules and discretion in policy decisions, from Michael D. Bordo, Klodiana Istrefi, and Humberto Martínez https://www.nber.org/papers/w33262

There is also recent research suggesting that fiscal expansions, especially if in the form of increases in public investments in R&D, boost private investment and productivity www.aeaweb.org/articles?id=... drive.google.com/file/d/13WlL... karelmertens.com/wp-content/u...

Very interesting and relevant!

The "Global Monitoring Report on Non-Bank Financial Intermediation 2024", by the Financial Stability Report (FSB).

"In 2023, the size of the NBFI sector increased 8.5%, more than double the pace of banking sector growth (3.3%)"

www.fsb.org/2024/12/glob...

An overview of alternative theories on the causes and nature of large economic fluctuations, from Joseph E. Stiglitz https://www.nber.org/papers/w33218

Fabio Canova presented a wonderful paper ‘Does the transmission of monetary policy shocks change when inflation is high?’ @kingsbschool.bsky.social.

Reserves Were Not so Ample After All* Abstract. We show that the likelihood of a liquidity crunch in wholesale US dollar funding markets depends on levels of reserve balances at the financial i

Recently accepted by #QJE, “Reserves Were Not So Ample After All,” by Duffie, Copeland, and Yang : doi.org/10.1093/qje/...

Incorporating forward-looking expectations into standard open economy structural vector autoregressive models, from Jongrim Ha, Dohan Kim, M. Ayhan Kose, and Eswar S. Prasad https://www.nber.org/papers/w33133

Interesting argument made by this paper: income inequality => more savings in stocks and bonds vs. bank deposits => less bank financing for small firms => less job creation. https://buff.ly/48IhmJP

Recently accepted to REStud, ``Standard Errors for Calibrated Parameters," from Cocci and Plagborg-Møller:

www.restud.com/standard-err...

End the Fed at your own peril.

Alesina and Summers (1993):