This paper presents direct evidence for relational (self-enforcing dynamic) contracts in sovereign bank lending. Unlike the existing empirical literature, its instrumental variables method allows for distinguishing a direct influence of past repayment problems on current spreads (a ``punishment"...

This paper investigates the role of the fiscal/monetary policy mix in explaining the rise and fall of inflation. I make use of a DSGE model in which agents are aware of the possibility of regime changes in the monetary/fiscal policy mix in order to study the potential role of the lack of fiscal...

account when there is aggregate price-level uncertainty.

We study a quantitative asset pricing model with a continuum of house types. Equilibrium house prices match the inventory of available houses and housing demand from households that differ by age, income, wealth, and access to credit markets. The shape of the house price function reflects...