Best of #econtwitter - Week of May 22, 2022 [2/3]
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Best of #econtwitter - Week of May 22, 2022 [2/3]
Welcome readers old and new to this week’s edition of Best of Econtwitter. Thanks to those sharing suggestions, over email or on Twitter @just_economics.
This is part two of three.
Editorial note: This week marks the two-year birthday of the newsletter 🥳. Always happy to see people getting value out of the weekly emails — we passed the 2,000-subscriber mark earlier this year — especially relative to the low marginal cost of production.
A two-question survey / more general opportunity for feedback here! Only you can prevent selection bias, by filling it out :)
Paper summaries
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
Why did housing prices and rents increase at an unprecedented pace over the last two years? In a new paper with John Mondragon @sffed, we show that the shift to remote work accounts for more than half of the overall increase in housing costs.
nber.org/papers/w30041
1/ With rising internationalization of economics since the 1970s, has European macroeconomics maintained or developed some specialties in comparison to the US?
That's the question of our paper with @alxndr_trc :
aurelien-goutsmedt.com/publication/ee…
A quick summary of our article 👉
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…
Our new paper on central bank digital currency is online!
Here's the question and how it works. We ask how CBDC affects bank lending, given extant frictions in the banking system. We go about it using a type of model that has been central to our research agenda.
1/8 🧵
SSRN @SSRN
One fav papers, of the few that changed my views, is Amromin and Sharpe 2005. They show that households have exactly the -opposite- view on expected returns and recessions that I was taught in my Ph.D. This paper is also the saddest example of the Matthew effect I know of. 🧵
Macroprudential policy has become a new pillar of the macro toolkit. But how should it be integrated with the traditional macro policies and what are the implications for global welfare?
Brief thread🧵on joint work with Louphou Coulibaly @LouphouC
NBER @nberpubs
🚨 New Working Paper 🚨
We show that monetary policy (MP) affects homeownership decisions, unveiling a new channel through which MP affects the economy.
Two relevant policy implications emerge.
FedResearch @FedResearch
Switching FB users to a chronological feed instead of algorithmic ranking sent exposure to dubious content "through the roof" - new FB paper documentcloud.org/documents/2174… via Gizmodo gizmodo.com/facebook-paper…
For more, see @deaneckles below - issue far more complicated than people think
Dean Eckles @deaneckles
.@mazzimon77 @laukarpuska and I are excited to circulate a new draft! We show that a parsimonious legislative bargaining model explains well the growing share of entitlements in public spending in an environment with unequal growth, where incomes are stagnant at the bottom. 1/4
NBER @nberpubs
Interesting discussions
Handbook copyeditors changed all my "I discuss..." and "I review..." to "...are discussed" and "This chapter reviews...", etc. I know this fight is probably not worth having, so I'm screaming into the Twitter void instead.
