Publications

Book: The New Dynamic Public Finance,  Princeton University Press, 2010. 

For all co-authored articles, the ordering of authors’ names is alphabetical.    

1. Difficulties in Testing for Capital Overaccumulation, Quantitative Economics  15 (2024), 89-114.

2. Infinite Debt Rollover in Stochastic Economies, Econometrica  91  (2023), 1629-1658. 

3. Public Debt Bubbles in Heterogeneous Agent Models with Tail Risk, International Economic Review  64  (2023), 491-509.  

4.  The Unavoidability of Low Inflation-Low Output Traps, Review of Economic Studies 89 (2022), 3410-3435. 

5. Stabilization with Fiscal Policy, Journal of Monetary Economics 131 (2022), 1-14 (lead article). 

6. The 21st Century Credibility Problem, in Choosing the Right Target: Real Options for the Bank of  Canada's Mandate Renewal, Max Bell School of Public Policy, McGill University, 2021.

7.  Bounds on price-setting, Theoretical Economics 16 (2021), 979-1015. 

8.  Analytical Formulae for Accurately Sized t-tests in the Single Instrument Case, Economics Letters 189 (2020).   

9.  The Future of the Zero Lower Bound Problem, Journal of International Money and Finance  95  (2019), 228-231.

10.  Public Goods with Ambiguity in Large Economies, Journal of Economic Theory 182 (2019), 218-46, joint with Y. Song.  

11.  Practical Policy Evaluation, Journal of Monetary Economics  102 (2019), 29-45. 

12.  The Decentralized Central Bank: A Review Essay on The Power and Independence of the Federal Reserve,, Journal of Economic Literature (2017), 621-636. 

13.  Rules versus Discretion: A Reconsideration, Brookings Papers on Economic Activity, Fall 2016, 1-36. 

14.  Comment on 'Forward Guidance and Macroeconomic Outcomes since the Crisis,' by Campbell, et. al., NBER Macro Annual  (2016), 358-363.

15.  Comment on ‘Quantifying the Lasting Harm of the Financial Crisis to the US Economy,’ by Robert Hall, NBER Macro Annual (2014), 146-152.

16.   Internal Debt Crises and Sovereign Default, Journal of Monetary Economics  68 (2014), S68-S80, joint with C. Arellano.

17.     Two Models of Land Overvaluation and Their Implications, in The Origins, History, and Future of the Federal Reserve, ed. M. Bordo and W. Roberds, New York: Cambridge University Press, 2013.

18.     Central Bank Independence and Sovereign Default,  in Banque de France Financial Stability Review  16  (2012), 151-154.

19.  Modern Macroeconomic Models as Tools for Policy, 2009 Annual Report, Federal Reserve Bank of Minneapolis (2010).

20.   Nonseparable Preferences and Optimal Social Security Systems, Journal of Economic Theory  145  (2010), 2055-2077, joint with B. Grochulski.

21.     On the Robustness of Laissez-Faire, Journal of Economic Theory  144  (2009), 2372-2387, joint with C. Phelan.

22.     Asset Pricing Implications of Pareto Optimality with Private Information, Journal of Political Economy  117  (2009), 555-590, joint with L. Pistaferri.

23.     Inequality and Real Exchange Rates,  Journal of European Economic Association 6 (2008), 597-608, joint with L. Pistaferri.

24.  Monetary and Fiscal Policy: An Overview,  2nd Edition of New Palgrave Dictionary of Economics, 2008. 

25.     Injecting Rational Bubbles, Journal of Economic Theory  142  (2008), 218-232.

26.   Model Fit and Model Selection,  July-August 2007, Federal Reserve Bank of St. Louis Review, 349-360.

27.     Forbearance and Prompt Corrective Action,  Journal of Money, Credit, and Banking  39  (2007), 1107-29, joint with I. Shim.

28.     Household Heterogeneity and Real Exchange Rates, Economic Journal  117 (2007), C1-C25, joint with L. Pistaferri (2006 Economic Journal Lecture).

29.   Advances in Dynamic Optimal Taxation, Advances in Economics and Econometrics: Theory and Applications, Ninth World Congress, Volume I, 269-299, 2006.

30.     Finite Memory and Imperfect Monitoring, Games and Economic Behavior  53 (2005), 59-72, joint with H. Cole.

31.     Zero Expected Wealth Taxes: A Mirrlees Approach to Dynamic Optimal Taxation,  Econometrica  73 (2005), 1587-1621.

32.     Optimal Monetary Policy: What We Know and What We Don’t Know, International Economic Review  46  (2005), 715-729 (reprinted in Federal Reserve Bank of Minneapolis Quarterly Review 29 (2005), 10-19).

33.  Wedges and Taxes, American Economic Review Papers and Proceedings  (2004), 109-113.

34.  Figuring Out the Impact of Hidden Savings on Optimal Unemployment Insurance, Review of Economic Dynamics  7  (2004), 541-554.

35.  On the Irrelevance of Government Debt When Taxes are Distortionary,  Journal of Monetary Economics  51  (2004), 299-304, joint with M. Bassetto.

36.  Optimal Indirect and Capital Taxation, Review of Economic Studies  70 (2003), 569-87, joint with M. Golosov and A. Tsyvinski.

37. Societal Benefits of Illiquid Bonds,  Journal of Economic Theory  108 (2003), 179-193.

38.  The Two-Money Theorem, International Economic Review  43 (2002), 333-46.

39.  Money: What’s the Question and Why Should We Care About the Answer? American Economic Review Papers and Proceedings  (2002), 58-61.

40.  Dynamic Games with Hidden Actions and Hidden States,  Journal of Economic Theory  98  (2001), 114-26, joint with H. Cole.

41. Risky Collateral and Deposit Insurance, Advances in Macroeconomics  1  (2001), Article 2.

42.  Looking for Evidence of Time-Inconsistent Preferences in Asset Market Data, Summer 2001, Federal Reserve Bank of Minneapolis Quarterly Review, 13-24.

43.  Efficient Allocations with Hidden Income and Hidden Storage, Review of Economic Studies  68 (2001), 523-42, joint with H. Cole.

44.  Creating Business Cycles Through Credit Constraints,  Federal Reserve Bank of Minneapolis Quarterly Review, Summer 2000,  2-10.

45. A Signaling Model of Multiple Monies, Review of Economic Dynamics 2 (1999), 231-44, joint with T. Krueger.

46. Explaining the Fiscal Theory of the Price Level, Federal Reserve Bank of Minneapolis Quarterly Review, Fall 1999, 14-23, joint with C. Phelan.

47. The Technological Role of Fiat Money,  Federal Reserve Bank of Minneapolis Quarterly Review, Summer 1998, 2-10 (based on "Money is Memory").

48. Zero Nominal Interest Rates: Why They're Good and How to Get Them, Federal Reserve Bank of Minneapolis Quarterly Review, Spring 1998, 2-10, joint with H. Cole.

49. Money is Memory,  Journal of Economic Theory  81  (1998), 232-251.

50.   Incomplete Record-Keeping and Optimal Payment Arrangements, Journal of Economic Theory  81  (1998), 272-289, joint with N. Wallace.

51.  The Effects of Moral Hazard on Asset Prices when Financial Markets are Complete,  Journal of Monetary Economics  41  (1998), 39-56.

52.  Using Theory for Measurement: Measuring the Cyclical Behavior of Home Production, Journal of Monetary Economics  40  (1997), 435-456, joint with B. F. Ingram and N. E. Savin.

53.  Testing the Consumption CAPM with Heavy-Tailed Pricing Errors, Macroeconomic Dynamics  1  (1997), 551-567.

54. Is there Endogenous Long Run Growth?  Evidence from the United States and the United Kingdom,  Journal of Money, Credit, and Banking 29 (1997), 235-262, joint with K. Yi.

55.  Implications of Efficient Risk Sharing without Commitment, Review of Economic Studies 63 (1996), 595-610.

56.  Why Should Older People Invest Less in Stocks than Younger People?, Federal Reserve Bank of Minneapolis Quarterly Review, Summer 1996, 11-23, joint with R. Jagannathan.

57.  Reconsideration-Proofness: A Refinement for Infinite Horizon Time Inconsistency, Games and Economic Behavior  15  (1996), 33-54.

58.  Consumption, Commitment and Cycles,  Journal of Monetary Economics  37 (1996), 461-474.

59.  The Equity Premium: It's Still A Puzzle,  Journal of Economic Literature  34  (1996), 42-71.

60.   A Simple Time Series Test of Endogenous vs. Exogenous Growth Models: An Application to the United States, Review of Economics and Statistics  78  (1996), 126-134, joint with K. Yi.

61.  Can Convergence Regressions Distinguish Between Exogenous and Endogenous Growth Models?  Economic Letters  49  (1995),  211-216, joint with K. Yi.

62.  Explaining Business Cycles: A Multiple Shock Approach, Journal of Monetary Economics 34  (1994), 415-428, joint with B. F. Ingram and N. E. Savin.

63.  Bubbles and Constraints on Debt Accumulation, Journal of Economic Theory  57 (1992), 245-56.  (Corrigendum, Journal of Economic Theory  208 (2023), joint with A. Toda.) 

64.  The Variability of Velocity in Cash-in-Advance Models,  Journal of Political Economy  99  (1991), 358-384, joint with R. Hodrick and D. Lucas.

65.  On Tests of Representative Consumer Asset Pricing Models, Journal of Monetary Economics  26  (1990), 285-304.

66.  Disentangling the Coefficient of Relative Risk Aversion from the Elasticity of Intertemporal Substitution: An Irrelevance Result,  The Journal of Finance 55 (1990), 175-190 (nominated for best paper in journal, 1990).

67.  On the 'Discount' Factor in Growth Economies, Journal of Monetary Economics 25  (1990), 43-47.