scholarly journals COVID-19 Vaccination and Financial Frictions

2021 ◽  
Author(s):  
Cristina Arellano ◽  
Yan Bai ◽  
Gabriel Mihalache
Keyword(s):  
Financial Frictions

scholarly journals Bayesian Evaluation of DSGE Models with Financial Frictions

2013 ◽  
Vol 45 (8) ◽  
pp. 1451-1476 ◽  
Author(s):  
MICHAŁ BRZOZA-BRZEZINA ◽  
MARCIN KOLASA
Keyword(s):  
Financial Frictions ◽  
Dsge Models

Financial frictions and the strength of monetary transmission

2013 ◽  
Vol 32 ◽  
pp. 1097-1119 ◽  
Author(s):  
Uluc Aysun ◽  
Ryan Brady ◽  
Adam Honig
Keyword(s):  
Financial Frictions ◽  
Monetary Transmission

Implications for Regional Science of the “Rebuilding Macroeconomic Theory Project”

2021 ◽  
pp. 016001762098659
Author(s):  
Kieran P. Donaghy
Keyword(s):  
Monetary Policy ◽  
Graduate Students ◽  
Global Financial Crisis ◽  
Financial Frictions ◽  
Regional Science ◽  
Macroeconomic Theory ◽  
Income Groups ◽  
Big Picture ◽  
Theory Project ◽  
The Global Financial Crisis

The inability of macroeconomists to anticipate the Global Financial Crisis or reproduce it in their models has led to an important stock-taking of deficiencies in, and necessary modifications to, theories and models used pervasively by researchers and taught to graduate students. This stock-taking—the so-called “Rebuilding Macroeconomic Theory Project,” organized by David Vines and Samuel Wills—has provided an opportunity for economy-wide modelers (who include regional scientists) to consider whether the theories and models they employ are adequate and appropriate to the tasks to which they put them. In this paper I provide a brief report on the project, retrace the development of macroeconomics, and summarize responses by prominent macroeconomists to a set of questions posed by organizers of the project, while drawing implications of these questions and responses for regional science. I then offer original suggestions from a regional scientist’s perspective on what is missing from the “benchmark” macro-model, how financial frictions can be introduced, how behavioral foundations might be modified, how heterogeneity of agents might be captured, and what new stylized facts need to be explained. I proceed to illustrate how several of the suggested changes can be integrated in economy-wide models by drawing on a study of the impacts of monetary policy on consumption by different income groups in Indonesia. I close the paper by posing a number of “big-picture questions” on the implications of the RMTP for economy-wide modelers and regional scientists to ponder and by offering a brief reflection and aspiration.

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