The Covid-19 shock almost caused a financial crisis. Central banks reacted aggressively to stop the free fall. My research with Ricardo Caballero sheds light on these events. Long thread! 1/N #EconTwitter VoxEU tinyurl.com/y9wd9g98 Paper tinyurl.com/ybzl3wkn

It is an absolute pleasure to release this new work, joint with the great Emmanuel Farhi and Alan Olivi: "Price Theory for Incomplete Markets" (the title is a wink at my alma mater). At long last, as it has been a very long haul. drive.google.com/file/d/1yi8p5z… A brief thread 1/n

In most econ applications, clustering std errors is a problem of design, not sampling. What does that mean? Clustering is needed if treatment assignment is correlated within clusters, not because some clusters were sampled and others were not. 1/8 Jeffrey Wooldridge

The Fed usually stabilizes markets (Fed put) But recently it did exactly the opposite When does the Fed stabilize markets? When does it destabilize? New paper with Caballero that sheds light on the love-hate relationship between the Fed and markets 1/16 dropbox.com/s/m9zsyrxxwett…

Bernanke famously quipped that “The problem with Quantitative Easing (QE) is that it works in practice but not in theory”. My paper with Bhattarai and Gafarov on how QE can work in theory is forthcoming in the Review of Economic Studies. A thread:

The first image from the Webb Space Telescope represents a historic moment for science and technology. For astronomy and space exploration. And for America and all humanity.

BREAKING NEWS The Royal Swedish Academy of Sciences has decided to award the 2023 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Claudia Goldin “for having advanced our understanding of women’s labour market outcomes.” #NobelPrize

1.5% of yearly US GDP goes to retirement saving incentives, amplifying race and parental income wealth gaps. Reforms could close retirement wealth gaps by one-third, from Taha Choukhmane, Jorge E. Colmenares, Cormac O'Dea, Rothbaum, and Lawrence Schmidt nber.org/papers/w32843

I really enjoyed speaking with Lisa Camner McKay about my research. Her piece captures the nuances of retirement saving policy and highlights why who saves more matters as much as how much we save.

Economic models often assume households behave as a single decision-making unit. Does this mirror reality? Taha Choukhmane (MIT Sloan School of Management), Lucas Goodman 🏳️‍🌈 (Treasury Department) & Cormac O'Dea (Yale Department of Economics) on the retirement savings of U.S. couples: youtu.be/eHowMVi5MoA