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University of Maryland Department of Economics

Economics 702: Advanced Macroeconomics II

Semester: Spring 2019 Instructor: Luminita Stevens Email: stevens@econ.umd.edu Class Time & Place: Mondays, 2 – 4:45 PM, HBK 0108 Office Hours: Arrange by email

DESCRIPTION Economics 702 is the spring half of the Economics Department’s two-semester sequence in Advanced Macroeconomics, intended for second-year Ph.D. students. This course will focus on monetary economics, from foundational work to recent advances. Topics include evidence of short-run monetary non-neutrality, the New Keynesian model, optimal monetary policy and the interaction between fiscal and monetary policy in the New Keynesian model, evidence of wage and price rigidities, theories of endogenous price rigidities, such as menu costs and information costs; evidence of deviations from the rational expectations model; monetary policy with imperfect information; inflation and monetary policy in the Great Recession; and new work on the monetary transmission mechanism. PREREQUISITES & POLICIES ECON 601 and ECON 602. Students who have not taken these courses and students from other departments or years should talk to me to enroll in or audit this course. Our primary means of communication outside the classroom is email. Additional materials are on ELMS. Please check your email and ELMS regularly. GRADING 20% = Literature review I on topic of choice 20% = Literature review II on topic of choice 20% = Presentation, Slides and Referee Report on one @ paper 20% = Weekly written comments on # papers 10% = Class discussions on # papers 10% = Referee report on a job market paper listed at the end of the reading list Deadlines, requirements and the scheduling of the presentations will be discussed in class. See the guides folder on ELMS for additional information.

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READING LIST (SUBJECT TO CHANGE) Below is an extensive reading list that goes beyond what we will cover in the course. I may update this list over the course of the semester. Feel free to suggest other papers. Papers with * are essential readings. Papers with # are candidates for comments. Papers with @ are candidates for presentations and referee reports.

Practical Books ............................................................................................................................................... 3

A. Some Evidence on Money, Prices & Output ......................................................................................... 3

B. Money, Inflation & Welfare ................................................................................................................... 3

C. The New Keynesian Phillips Curve ........................................................................................................ 3

D. Real Rigidities, Amplification & Persistence ......................................................................................... 4

E. Monetary Policy: Theory & Practice ...................................................................................................... 4

F. The Interaction between Monetary & Fiscal Policy. Some Results on Fiscal Multipliers ................... 4

G. Rigid Wages: Theory & Evidence ........................................................................................................... 5

H. Rigid Prices: Micro Evidence .................................................................................................................. 6

I. State-Dependent Pricing Models .......................................................................................................... 6

J. The Sticky Information Phillips Curve ................................................................................................... 7

K. Dispersed Information & Rational Inattention ..................................................................................... 7

L. Monetary Policy & Imperfect Information ........................................................................................... 8

M. Rational Expectations? ...................................................................................................................... 8

N. Information Frictions: Experimental Evidence ..................................................................................... 8

O. Inflation in the Great Recession ............................................................................................................ 9

P. The Zero Lower Bound ........................................................................................................................... 9

Q. Quantitative Easing & Forward Guidance ............................................................................................. 9

R. Forward Guidance & Imperfect Information ...................................................................................... 10

S. New Evidence & Theory on the Transmission Mechanism of Monetary Policy ................................ 10

Some Recent Job Market Papers in Macro ................................................................................................. 11

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Practical Books Adler, Mortimer J., and Charles Van Doren. How to read a book: The classic guide to intelligent reading. Simon and Schuster, 2014. Belcher, Wendy L.. Writing your journal article in twelve weeks: A guide to academic publishing success. Sage, 2009.

A. Some Evidence on Money, Prices & Output

* Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. "Monetary policy shocks: What have we learned and to what end?" Handbook of Macroeconomics 1 (1999): 65-148. * Jordà, Òscar. "Estimation and inference of impulse responses by local projections." American Economic Review 95.1 (2005): 161-182. # Ben S. Bernanke, Jean Boivin, and Piotr Eliasz. "Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (FAVAR) Approach." The Quarterly Journal of Economics, 120(1):387-422, 2005 # Boivin, Jean, Marc P. Giannoni, and Ilian Mihov. "Sticky Prices and Monetary Policy: Evidence from Disaggregated US Data." The American Economic Review 99, no. 1 (2009): 350-84. # Romer, Christina D., and David H. Romer. "Does monetary policy matter? A new test in the spirit of Friedman and Schwartz." NBER Macroeconomics Annual 1989 Volume 4. MIT Press. 121-184. # Gürkaynak, Refet S., Brian Sack, and Eric Swanson. "The sensitivity of long-term interest rates to economic news: Evidence and implications for macroeconomic models." The American Economic Review 95.1 (2005): 425-436. # Gürkaynak, Refet S., Brian Sack, and Eric T. Swansonc. "Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements." International Journal of Central Banking (2005). # Nakamura, Emi, and Jón Steinsson. "High-frequency identification of monetary non-neutrality: The information effect." The Quarterly Journal of Economics 133.3 (2018): 1283-1330.

B. Money, Inflation & Welfare # Lucas Jr, Robert E. "Inflation and welfare." Econometrica 68.2 (2000): 247-274. # Cooley, Thomas F., and Gary D. Hansen. "The welfare costs of moderate inflations." Journal of Money, Credit and Banking (1991): 483-503. # Dotsey, Michael, and Peter Ireland. "The welfare cost of inflation in general equilibrium." Journal of Monetary Economics 37.1 (1996): 29-47. # Attanasio, Orazio P., Luigi Guiso, and Tullio Jappelli. "The Demand for Money, Financial Innovation, and the Welfare Cost of Inflation: An Analysis with Household Data." Journal of Political Economy 110.2 (2002): 317-351.

C. The New Keynesian Phillips Curve

* Woodford (2003) - Chapter 3, section 2

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D. Real Rigidities, Amplification & Persistence

* Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. "Nominal rigidities and the dynamic effects of a shock to monetary policy." Journal of Political Economy 113.1 (2005): 1-45. *#Rotemberg, Julio J., and Michael Woodford. "The cyclical behavior of prices and costs." Handbook of macroeconomics 1 (1999): 1051-1135. *# Ball, Laurence, and David Romer. "Real Rigidities and the Non-neutrality of Money." The Review of Economic Studies 57.2 (1990): 183-203. # Kimball, Miles. "The Quantitative Analytics of the Basic Neomonetarist Model." Journal of Money, Credit and Banking 27.4 (1995): 1241-77. # Basu, S. (1995). Intermediate Goods and Business Cycle: Implication for Productivity and Welfare," American Economic Review, 85(3), 512-531. # Gopinath, Gita, and Oleg Itskhoki. "In search of real rigidities." NBER Macroeconomics Annual 25.1 (2011): 261-310. # Carvalho, Carlos. "Heterogeneity in price stickiness and the real effects of monetary shocks." Frontiers in Macroeconomics 6.3 (2006).

E. Monetary Policy: Theory & Practice

* Woodford (2003), Chapter 4, sections 1, 2.1, 2.2

* Clarida, Richard, Jordi Gali, and Mark Gertler. "Monetary policy rules and macroeconomic stability: evidence and some theory." The Quarterly Journal of Economics 115.1 (2000): 147-180.

# Orphanides, Athanasios. "Monetary policy rules based on real-time data." American Economic Review 91.4 (2001): 964-985.

Welfare

* Woodford (2003), Chapter 6, sections 1,2,3 Woodford, Michael "Optimal Monetary Stabilization Policy." Handbook of Monetary Economics 3B (2010): 723-828.

Commitment versus Discretion

* Woodford (2003), Chapter 7 * Clarida, Richard, Jordi Gali, and Mark Gertler. "The Science of Monetary Policy: A New Keynesian Perspective." Journal of Economic Literature 37 (1999): 1661-1707. # Benigno, Pierpaolo. "Optimal monetary policy in a currency area." Journal of International Economics 63.2 (2004): 293-320.

F. The Interaction between Monetary & Fiscal Policy. Some Results on Fiscal Multipliers

* Benigno, Pierpaolo, and Michael Woodford. "Optimal monetary and fiscal policy: A linear-quadratic approach." NBER Macroeconomics Annual 2003, Volume 18. The MIT Press, 2004. 271-364.

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# Schmitt-Grohé, Stephanie, and Martín Uribe. "Optimal fiscal and monetary policy under sticky prices." Journal of Economic Theory 114 (2004): 198-230. # Siu, Henry E. "Optimal fiscal and monetary policy with sticky prices." Journal of Monetary Economics 51.3 (2004): 575-607. # Schmitt-Grohé, Stephanie, and Martín Uribe. "Optimal simple and implementable monetary and fiscal rules." Journal of Monetary Economics 54 (2007): 1702-1725. # Gali, J., and T. Monacelli. "Optimal Monetary and Fiscal Policy in a Currency Union." Journal of International Economics 76, no. 1 (2008): 116–32.

Fiscal Multipliers * Woodford, Michael. "Simple Analytics of the Government Expenditure Multiplier." American Economic Journal: Macroeconomics 3.1 (2011): 1-35. # Galí, Jordi, J. David López-Salido, and Javier Vallés. "Understanding the effects of government spending on consumption." Journal of the European Economic Association 5.1 (2007): 227-270. # Mountford, Andrew, and Harald Uhlig. "What are the effects of fiscal policy shocks?" Journal of Applied Econometrics 24.6 (2009): 960-992. # Nakamura, Emi, and Jon Steinsson. "Fiscal stimulus in a monetary union: Evidence from US regions." American Economic Review 104.3 (2014): 753-92. # Leeper, Eric M., Nora Traum, and Todd B. Walker. "Clearing up the fiscal multiplier morass." American Economic Review 107.8 (2017): 2409-54.

G. Rigid Wages: Theory & Evidence * Galí, Jordi. "Monetary policy and unemployment." Handbook of Monetary Economics. Vol. 3. Elsevier, 2010. 487-546. * Christiano, Lawrence J., Martin S. Eichenbaum, and Mathias Trabandt. "Unemployment and Business Cycles." (2013). # Barattieri, Alessandro, Susanto Basu, and Peter Gottschalk. "Some evidence on the importance of sticky wages." NBER Working Paper no. 16130. 2010. # Heckel, Thomas, Hervé Le Bihan, and Jérémi Montornès. "Sticky wages: evidence from quarterly microeconomic data." (2008). # Gertler, Mark, and Antonella Trigari. "Unemployment Fluctuations with Staggered Nash Wage Bargaining." Journal of Political Economy 117.1 (2009): 38-86. # Pissarides, Christopher. "The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?" Econometrica 77.5 (2009): 1339-1369. # Hall, Robert E. "Employment Fluctuations with Equilibrium Wage Stickiness." American Economic Review 95.1 (2005): 50-64.

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# Hall, Robert E. and Paul R. Milgrom. "The Limited Influence of Unemployment on the Wage Bargain." The American Economic Review 98.4 (2008): 1653-1674.

H. Rigid Prices: Micro Evidence

* Bils, Mark, and Peter J. Klenow. "Some evidence on the importance of sticky prices." Journal of Political Economy 112.5 (2004): 947-985. * Nakamura, Emi, and Jón Steinsson. "Five facts about prices: A reevaluation of menu cost models." The Quarterly Journal of Economics 123.4 (2008): 1415-1464. # Eichenbaum, Martin, Nir Jaimovich, and Sergio Rebelo. "Reference prices and nominal rigidities." The American Economic Review 101 (2011): 234-262. # Klenow, Peter J., and Benjamin A. Malin. "Microeconomic evidence on price-setting." Handbook of Monetary economics 3A (2010): 231-284. # Gagnon, Etienne. "Price setting during low and high inflation: Evidence from Mexico." The Quarterly Journal of Economics 124.3 (2009): 1221-1263. # Alvarez, F., Gonzalez-Rozada, M., Neumeyer, A., & Beraja, M. “From Hyperinflation to Stable Prices: Argentina’s Evidence on Menu Cost Models.” (2016). # Carlsson, Mikael, and Oskar Nordström Skans. "Evaluating microfoundations for aggregate price rigidities: evidence from matched firm-level data on product prices and unit labor cost." American Economic Review 102.4 (2012): 1571-95.

I. State-Dependent Pricing Models * Golosov, Mikhail, and Robert E. Lucas Jr. "Menu Costs and Phillips Curves." Journal of Political Economy 115.2 (2007): 171-199. # Gertler, Mark, and John Leahy. "A Phillips curve with an Ss foundation." Journal of Political Economy 116.3 (2008): 533-572. # Caballero, Ricardo J., and Eduardo MRA Engel. "Price stickiness in Ss models: New interpretations of old results." Journal of Monetary Economics 54 (2007): 100-121. # Midrigan, Virgiliu. "Menu Costs, Multi-Product Firms, and Aggregate Fluctuations." Econometrica 79.4 (2011): 1139-1180. # Kehoe, Patrick J., and Virgiliu Midrigan. "Prices are sticky after all." Journal of Monetary Economics 75 (2015): 35-53. # Dotsey, Michael, Robert G. King, and Alexander L. Wolman. "State-dependent pricing and the general equilibrium dynamics of money and output." The Quarterly Journal of Economics 114.2 (1999): 655-690. # Nakamura, Emi, and Jón Steinsson. "Monetary Non-Neutrality in a Multi-Sector Menu Cost Model." The Quarterly Journal of Economics 125.3 (2010): 961-1013. # Vavra, Joseph. "Inflation dynamics and time-varying volatility: New evidence and an ss interpretation." The Quarterly Journal of Economics 129.1 (2014): 215-258.

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# Gorodnichenko, Yuriy, and Michael Weber. "Are sticky prices costly? Evidence from the stock market." The American Economic Review 106.1 (2016): 165-199.

J. The Sticky Information Phillips Curve

* Mankiw, N. Gregory, and Ricardo Reis. "Sticky information versus sticky prices: a proposal to replace the New Keynesian Phillips curve." The Quarterly Journal of Economics 117.4 (2002): 1295-1328. # Reis, Ricardo. "Inattentive producers." The Review of Economic Studies 73.3 (2006): 793-821. # Klenow, Peter J., and Jonathan L. Willis. "Sticky information and sticky prices." Journal of Monetary Economics 54 (2007): 79-99. # Mankiw, N. Gregory, and Ricardo Reis. "Pervasive stickiness." The American Economic Review (2006): 164-169.

K. Dispersed Information & Rational Inattention

* Mankiw, N. Gregory, and Ricardo Reis. "Imperfect information and aggregate supply. " Handbook of Monetary Economics 3A (2010): 182-230. * Woodford, Michael. "Imperfect common knowledge and the effects of monetary policy. " In P. Aghion, R. Frydman, J. Stiglitz, and M. Woodford, eds. Knowledge, Information and Expectations in Modern Macroeconomics, Princeton: Princeton University Press 2002: 25-58. * Sims, Christopher A. "Implications of rational inattention." Journal of Monetary Economics 50.3 (2003): 665-690. * Sims, Christopher A. "Rational inattention and monetary economics." Handbook of Monetary Economics 3A (2010): 2-2. # Amato, Jeffery D., and Hyun Song Shin. "Imperfect common knowledge and the information value of prices." Economic Theory 27.1 (2006): 213-241. # Nimark, Kristoffer. "Dynamic pricing and imperfect common knowledge." Journal of Monetary Economics 55.2 (2008): 365-382. # Maćkowiak, Bartosz, and Mirko Wiederholt. "Optimal sticky prices under rational inattention." The American Economic Review 99.3 (2009): 769-803. # Pasten, Ernesto, and Raphael Schoenle. "Rational inattention, multi-product firms and the neutrality of money." Journal of Monetary Economics 80 (2016): 1-16. # Woodford, Michael. "Information-constrained state-dependent pricing." Journal of Monetary Economics 56 (2009): S100-S124. # Matějka, Filip. "Rationally inattentive seller: Sales and discrete pricing." The Review of Economic Studies 83.3 (2015): 1125-1155. # Stevens, Luminita. "Coarse Pricing Policies." (2018). # Drenik, Andres, and Diego Perez. "Price setting under uncertainty about inflation." (2016). # Baley, Isaac, and Julio A. Blanco. "Menu costs, uncertainty cycles, and the propagation of nominal shocks." (2018).

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L. Monetary Policy & Imperfect Information * Eusepi, Stefano, and Bruce Preston. “The science of monetary policy: An imperfect knowledge perspective." Journal of Economic Literature 56.1 (2018): 3-59. # Adam, Klaus. "Optimal monetary policy with imperfect common knowledge." Journal of Monetary Economics 54.2 (2007): 267-301. # Lorenzoni, Guido. "Optimal monetary policy with uncertain fundamentals and dispersed information." The Review of Economic Studies 77.1 (2010): 305-338. # Paciello, Luigi, and Mirko Wiederholt. "Exogenous information, endogenous information and optimal monetary policy." The Review of Economic Studies 81.1 (2014): 356-338. # Angeletos, George-Marios, and Jennifer La'O. "Optimal Monetary Policy with Informational Frictions." (2017). #@ Afrouzi, Hassan. "Strategic Inattention, Inflation Dynamics and the Non-Neutrality of Money." (2017). #@ Melosi, Leonardo. "Signaling effects of monetary policy." The Review of Economic Studies 84.2 (2016):853-884.

M. Rational Expectations? # Mankiw, N.G., Reis, R. and Wolfers, J. (2003). “Disagreement about Inflation Expectations.” In NBER Macroeconomics Annual 2003, ed. by M. Gertler, and K. Rogof #@ Coibion, Olivier, and Yuriy Gorodnichenko. "What Can Survey Forecasts Tell Us about Information Rigidities?." Journal of Political Economy 120.1 (2012): 116-159. #@ Coibion, Olivier, and Yuriy Gorodnichenko. "Information rigidity and the expectations formation process: A simple framework and new facts." The American Economic Review 105.8 (2015): 2644-2678. # Coibion, Olivier, Yuriy Gorodnichenko, and Saten Kumar. "How do firms form their expectations? New survey evidence." The American Economic Review 108.9 (2018): 2671-2713. # Coibion, Olivier, Yuriy Gorodnichenko, and Rupal Kamdar. "The formation of expectations, inflation, and the Phillips Curve." Journal of Economic Literature 56.4 (2018): 1447-91.

N. Information Frictions: Experimental Evidence # Magnani, Jacopo, Aspen Gorry, and Ryan Oprea. "Time and state dependence in an Ss decision experiment." American Economic Journal: Macroeconomics 8.1 (2016): 285-310. # Khaw, Mel Win, Luminita Stevens, and Michael Woodford. "Discrete Adjustment to a Changing Environment: Experimental Evidence. " Journal of Monetary Economics 91 (2017): 88-103. # Cavallo, Alberto, Guillermo Cruces, and Ricardo Perez-Truglia. "Inflation Expectations, Learning and Supermarket Prices: Evidence from Survey Experiments." American Economic Journal: Macroeconomics 9.3 (2017):1-35.

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O. Inflation in the Great Recession

# Coibion, Olivier, and Yuriy Gorodnichenko. "Is the Phillips curve alive and well after all? Inflation expectations and the missing disinflation." American Economic Journal: Macroeconomics 7.1 (2015): 197-232. # Del Negro, Marco, Marc P. Giannoni, and Frank Schorfheide. "Inflation in the Great Recession and New Keynesian models." American Economic Journal: Macroeconomics 7.1 (2015): 168-196.

P. The Zero Lower Bound

* Krugman, Paul R., “It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap,” Brookings Papers on Economic Activity 1998-2: 137-206. * Eggertsson, Gauti B., and Michael Woodford. "The Zero Bound on Interest Rates and Optimal Monetary Policy." Brookings Papers on Economic Activity 1 (2003): 139-211. # Eggertsson, Gauti B., and Michael Woodford. "Optimal monetary and fiscal policy in a liquidity trap." NBER International Seminar on Macroeconomics 2004. The MIT Press, 2006: 75-131. # Eggertsson, Gauti B. “The Paradox of Toil,’’ Federal Reserve Bank of New York Staff Report No. 433, 2010. # Wieland, Johannes F. (2017) “Are Negative Supply Shocks Expansionary at the Zero Lower Bound?” Journal of Political Economy, forthcoming # Christiano, Lawrence, Martin Eichenbaum, and Sergio Rebelo. "When Is the Government Spending Multiplier Large?." Journal of Political Economy 119.1 (2011): 78-121. # Eggertsson, Gauti B. "What fiscal policy is effective at zero interest rates?." NBER Macroeconomics Annual 25 (2010): 59-112. # Eggertsson, Gauti B. "Was the New Deal Contractionary?." The American Economic Review 102.1 (2012): 524-55. # Eggertsson, Gauti B., and Paul Krugman. "Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach*." The Quarterly Journal of Economics127.3 (2012): 1469-1513. # Benhabib, Jess, Stephanie Schmitt-Grohé, and Martin Uribe. "Avoiding liquidity traps." Journal of Political Economy 110.3 (2002): 535-563. # Aruoba, S. Borağan, Pablo Cuba-Borda, and Frank Schorfheide. "Macroeconomic dynamics near the ZLB: A tale of two countries." The Review of Economic Studies 85.1 (2018):87-118. # Schmitt-Grohé, Stephanie, and Martín Uribe. "Liquidity Traps and Jobless Recoveries." American Economic Journal: Macroeconomics 9.1 (2017): 165-204. # Mertens, Karel RSM, and Morten O. Ravn. "Fiscal policy in an expectations-driven liquidity trap." The Review of Economic Studies 81.4 (2014): 1637-1667.

Q. Quantitative Easing & Forward Guidance

* Woodford, Michael. "Methods of Policy Accommodation at the Interest-Rate Lower Bound." (2012).

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Wallace, Neil. “A Modigliani-Miller Theorem for Open-Market Operations.” The American Economic Review, vol. 71, no. 3, 1981, pp. 267–274. #@ Curdia, Vasco, and Michael Woodford. "The central-bank balance sheet as an instrument of monetary policy." Journal of Monetary Economics 58.1 (2011): 54-79. #@ McKay, Alisdair, Emi Nakamura, and Jón Steinsson. "The power of forward guidance revisited." The American Economic Review 106.10 (2016): 3133-3158. #@ Farhi, Emmanuel, and Iván Werning. "Monetary Policy, Bounded Rationality, and Incomplete Markets." No. w23281. National Bureau of Economic Research, 2017. * Gürkaynak, Refet S., Brian Sack, and Eric T. Swanson. "Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements." International Journal of Central Banking (2005). * Krishnamurthy, Arvind, and Annette Vissing-Jorgensen. "The effects of quantitative easing on interest rates: channels and implications for policy." No. w17555. National Bureau of Economic Research, 2011. # Gagnon, Joseph., M Raskin, J. Remache, and B Sack. "Large-Scale Asset Purchases by the Federal Reserve: Did They Work?." Economic Policy Review (2011): 41. # Swanson, Eric T., and John C. Williams. "Measuring the effect of the zero lower bound on medium-and longer-term interest rates." The American Economic Review 104.10 (2014): 3154-3185. # Eggertsson, Gauti B., “Great Expectations and the End of the Depression,” The American Economic Review 98 (2008): 1476-1516.

R. Forward Guidance & Imperfect Information #@ Angeletos, George-Marios, and Chen Lian. “Forward Guidance without Common Knowledge.“ No. w22785. National Bureau of Economic Research, 2016. #@ Angeletos, George-Marios, and Chen Lian. "Dampening General Equilibrium: From Micro Elasticities to Macro Effects." Massachusetts Institute of Technology mimeo (2017). #@ Gaballo, Gaetano. (2016) “Rational Inattention to News: The Perils of Forward Guidance.” American Economic Journal: Macroeconomics, 8(1): 42–97 #@ Andrade, P., Gaballo, G., Mengus, E., & Mojon, B. “Forward guidance and heterogeneous beliefs.“ (2015). #@ Wiederholt, Mirko. "Empirical properties of inflation expectations and the zero lower bound." Goethe University Frankfurt (2014).

S. New Evidence & Theory on the Transmission Mechanism of Monetary Policy #@ Di Maggio, Marco, Amir Kermani, and Christopher Palmer. "Unconventional monetary policy and the allocation of credit." Columbia Business School Research Paper 16-1 (2016). #@ Gertler, Mark, and Peter Karadi. "Monetary policy surprises, credit costs, and economic activity." American Economic Journal: Macroeconomics 7.1 (2015): 44-76.

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#@ Kaplan, Greg, Benjamin Moll, and Giovanni L. Violante. "Monetary policy according to HANK. " The American Economic Review 108 (2018):697-743. #@ Gornemann, Nils, Keith Kuester, and Makoto Nakajima. "Doves for the rich, hawks for the poor? Distributional consequences of monetary policy." (2016). #@ Auclert, Adrien. "Monetary policy and the redistribution channel." Unpublished manuscript (2017).

#@ Wong, Arlene. "Population aging and the transmission of monetary policy to consumption." Unpublished manuscript (2018). #@ Beraja, M., Fuster, A., Hurst, E., & Vavra, J. "Regional heterogeneity and monetary policy.", No. w23270. National Bureau of Economic Research, 2017.

#@ Beraja, Martin, Erik Hurst, and Juan Ospina. "The Aggregate Implications of Regional Business Cycles." No. w21956. National Bureau of Economic Research, 2016. #@ Ottonello, Pablo, and Thomas Winberry. “Financial heterogeneity and the investment channel of monetary policy.” No. w24221. National Bureau of Economic Research, 2018. #@ Adam, Klaus, and Henning Weber. "Optimal trend inflation." American Economic Review 109.2 (2019): 702-37.

Some Recent Job Market Papers in Macro Hassan Afrouzi, Strategic Inattention, Inflation Dynamics and the Non-Neutrality of Money Sydnee Caldwell, Outside Options, Bargaining, and Wages: Evidence from Coworker Networks Alan Olivi, Revealed Preferences and Beliefs from Consumption-Savings Decisions: Identification Results and an Empirical Investigation Christina Patterson, The Matching Multiplier and the Amplification of Recessions Fabian Eckert, Growing Apart: Tradable Services and the Fragmentation of the U.S. Economy Federico Huneeus, Production Network Dynamics and the Propagation of Shocks Joachim Hubmer, The Race Between Preferences and Technology Gregor Jarosch, Searching for Job Security and the Consequences of Job Loss Kyle Jurado, Advance Information and Distorted Beliefs in Macroeconomic and Financial Fluctuations Pooya Molavi, Macroeconomics with Learning and Misspecification: A General Theory and Applications John Mondragon, Household Credit and Employment in the Great Recession Simon Mongey, Market structure and monetary non-neutrality Pablo Ottonello, Capital Unemployment, Financial Shocks, and Investment Slumps

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Jonathan Payne, The Disruption of Long Term Bank Credit Ludwig Straub, Consumption, Savings, and the Distribution of Permanent Income Olivier Wang, Banks, Low Interest Rates, and Monetary Policy Transmission Thomas R. Winberry, Lumpy Investment, Business Cycles, and Stimulus Policy