This paper studies the potential gains of monetary and macro-prudential policies that lean against house-price and credit cycles. We rely on a model that features Borrowers and Savers and allows for over-borrowing induced by news-shock-driven cycles. We fi ...
This paper develops a DSGE model with housing, risky mortgages, and endogenous default. Housing investment is subject to idiosyncratic risk, and some mortgages are defaulted in equilibrium. An unanticipated increase in the standard deviation of housing inv ...
We present constraints on canonical single-field inflation derived from WMAP five year, ACBAR, QUAD, BICEP data combined with the halo power spectrum from SDSS LRG7. Models with a non-scale-invariant spectrum and a red tilt n(S) < 1 are now preferred over ...