Discussion Papers

We examine a novel mechanism whereby the US dollar’s global dominance can have a large, unexpected impact on foreign Treasury yields in crisis periods...

We propose a loglinear present-value identity in which investment ("scale"), profitability ("yield"), and discount rates determine a firm’s market-to...

This paper argues that political affiliation plays a central role in shaping household expectations and consumption behavior. Using survey and...

We consider a setting in which privately informed agents are located in a network and trade a risky asset with other agents with whom they are...

When members of the same household have different risk preferences, whose preference matters more for investment decisions and why? We propose an...

We propose a novel way to estimate a portfolio’s abnormal price, the percentage gap between price and the present value of dividends computed with a...

We study exchange rate expectations in surveys of financial professionals and find that they successfully forecast currency appreciation at the two...

We examine how the tail risk of currency returns over the past 20 years were impacted by central bank (monetary and liquidity) measures across the...

This paper examines how market power affects coverage in a general class of insurance models. We show that market power decreases coverage for...

The existing literature has documented “reaching for yield”—the phenomenon of investing more in risky assets when interest rates are lower—among...

I propose a novel method to identify the exogenous monetary shock from the signaling effect of a Fed announcements in real time. The method relies on...

There is little direct empirical evidence on the investment behavior of wealthy households. Based on a proprietary database of investment portfolios...

We develop a dynamic model of DeFi lending that incorporates the following key features: 1) borrowing and lending are decentralized, anonymous...

This paper shows that, in a world dominated by vehicle currencies, firms engaging in international operations retain currency risk and hedge it real...

The paper develops a model of bubbles that can be taken to the data and explain the behavior of asset prices and their statistics. We depart from the...

Investors have limited and time-varying attention. These constraints are heterogeneous across investors, which can create asymmetric information and...