This dissertation consists of two essays in international macroeconomics. Thefirst essay shows that optimal fiscal and monetary policy is time consistent in astandard small open economy. Further, there exist many maturity structuresof public debt capable of rendering the optimal policy time...

This dissertation is motivated by the fact that while the literature has had a great deal of success in developing empirical models for monetary policy analysis, the same can not be said for fiscal policy. This work advances our understanding of various issues in identification and modeling of...

This dissertation is comprised of two chapters. In the first chapter, I investigate the role of systematic U.S. monetary policy in the presence of oil price shocks. The second chapter is devoted to studying different approaches to modeling energy demand. In an influential paper, Bernanke,...

This dissertation is the collection of three essays aimed to evaluate the empirical performance of dynamic stochastic general equilibrium (DSGE) models in explaining the behavior of macroeconomic dynamics in emerging countries. Chapter 1, which is joint work with M. Uribe and R. Pancrazzi,...

Estudiamos los efectos macroeconómicos de devaluaciones internas llevadas a cabo en los países de la periferia de una unión monetaria. Encontramos que las devaluaciones internas tienen efectos grandes y positivos sobre el output en el largo plazo. A través del canal de expectativas, la mayor...

We postulate a nonlinear DSGE model with a financial sector and heterogeneous households. In our model, the interaction between the supply of bonds by the financial sector and the precautionary demand for bonds by households produces significant endogenous aggregate risk. This risk induces an...

This paper studies how household inequality shapes the effects of the zero lower bound (ZLB) on nominal interest rates on aggregate dynamics. To do so, we consider a heterogeneous agent New Keynesian (HANK) model with an occasionally binding ZLB and solve for its fully non-linear stochastic...

This paper introduces a labor force participation choice into a labor marketmatching model embedded in a dynamic stochastic general equilibrium set-upwith production and savings. The participation choice is modelled as a tradeoffbetween forgoing the expected benefits of being search active and...

A relation between inflation and the path of average marginal cost (often measured by unit labor cost) implied by the Calvo (1983) model of staggered pricing – sometimes referred to as the "New Keynesian" Phillips curve – has been the subject of extensive econometric estimation and testing....