Based on the world’s largest loss database of corporate defaults, we perform a comparative analysis of machine learning (ML) methods in credit risk modeling across the globe. We find that ML methods, especially tree-based methods, substantially outperform both simple and sophisticated...

We introduce a digital currency, either as a central bank digital currency (CBDC) or a financial crypto asset (stablecoin), in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the digital currency, we...

We study monetary policy delegation in a framework where fiscal policy is determined endogenously and wages are negotiated by trade unions who face a trade-off between real wages and employment.If the median trade union voter is a senior member the nominal wages are too high to guarantee full...