We study the effects of nominal debt on the optimal sequential choice of monetary policy. When the stock of debt is nominal, the incentive to generate unanticipated inflation increases the cost of the outstanding debt even ...
Chari, V. V.; Nicolini, Juan Pablo; Teles, Pedro(2018-02)
We study cooperative optimal Ramsey equilibria in the open economy, addressing classic policy
questions: Should restrictions be placed to free trade and capital mobility? Should capital income
be taxed? Should goods be ...
We use a model of automation to show that with the current U.S. tax system, a fall in automation
costs could lead to a massive rise in income inequality. This inequality can be reduced by raising
marginal income tax rates ...
Ayres, João; Navarro, Gaston; Nicolini, Juan Pablo; Teles, Pedro(2018-02)
In the standard model of sovereign default, as in Aguiar and Gopinath (2006) or Arellano (2008),
default is driven by fundamentals alone. There is no independent role for expectations. We show
that small variations of ...
Ayres, João; Navarro, Gaston; Nicolini, Juan Pablo; Teles, Pedro(2016-06)
In the standard model of sovereign default, as in Aguiar and Gopinath (2006) or Arellano (2008), default is driven by fundamentals alone. There is no independent role for expectations. We show that small variations of that ...
