Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

We model the dynamic competition among national fiat currencies, cryptocurrencies, and Central Bank Digital Currencies (CBDCs), whereby a country’s fiscal strength and currency strength are mutually reinforcing. The rise of cryptocurrencies hurts stronger fiat currencies, but can benefit weaker fi...
Keywords: CBDC, Cryptocurrency, Currency Competition, Digitization, Dollarization, Money, Stablecoin, Tokenomi
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

Recessions are associated with sharp increases in turbulence that reshuffle firms’ productivity rankings. To study the business cycle implications of turbulence shocks, we use Compustat data to construct a measure of turbulence based on the (inverse of) Spearman correlations of firms’ productivi...
Keywords: Turbulence, heterogeneous firms, financial frictions, reallocation, productivity, business cycles.
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

According to one of the most striking results in the recent open macro literature, the gains from international monetary cooperation are negligible. We show that when assessed conditionally on empirically relevant dynamic developments of the economy, the welfare cost of moving away from regimes of e...
Keywords: monetary policy cooperation, global imbalances, open-loop Nash games
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2022

Using comprehensive account-level data from 2016 to 2019, we examine retail investor trading behavior in the Chinese stock market. We separate millions of retail investors into five groups by their account sizes and document strong heterogeneity in their trading dynamics and performance. Retail inve...
Keywords: Retail investors, Chinese stock market, Return predictability, Information content
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Annual Conference

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Investment Finance

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May 2022

We document significant outperformance by government bond funds on important macro announcement days such as FOMC and GDP. The macro-day outperformance is persistent, larger during times of high macro disagreement and surprise, and stronger for active funds with larger idiosyncratic volatility. Thei...
Keywords: FOMC, GDP, Bond Mutual Fund, Macroeconomic Announcement, Activeness
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