New: "Exchange rate misalignment and external imbalances: What is the optimal monetary policy response?" by Giancarlo Corsetti, Luca Dedola (European Central Bank Research) and Sylvain Leduc. How should monetary policy respond to excessive capital inflows ? doi.org/10.1016/j.jint… 1/2

A High School student just wrote to me asking for help on discerning correlation and causation. They said that they are visual learners. I sent this picture along. H/T my past self who posted this over a year ago.

Why countries always seek an IMF bailout? The answer is in our following paper. sciencedirect.com/science/articl…

Schrödinger's Plates: The plates are both broken and not broken until you open the door.

New: "The international transmission of local economic shocks through migrant networks" by María Esther Caballero (Maria Esther Caballero), Brian Cadena (Brian Cadena) and Brian Kovak (Heinz College at CMU). doi.org/10.1016/j.jint… 1/2

Can access to electricity affect financial development? We answer this question in our following paper. onlinelibrary.wiley.com/doi/full/10.11….

Analyzing a general open-economy model around the trade autarky limit to identify forces that account for macro and finance exchange rate disconnect, from Oleg Itskhoki and Dmitry Mukhin nber.org/papers/w32008

In our latest paper below, we argue that an unplanned attempt to over-rely on the tourism sector, coupled with a heavy dependence on imported merchandise to feed international tourists may have detrimental net growth effects on hosting islands. journals.sagepub.com/doi/10.1177/13…

Whether and how regulation-constrained firms’ investment in green strategies affects green revenues? Using all China’s A-share listed firms from 2009 to 2018, we answer this question in our following paper. sciencedirect.com/science/articl…

Dear colleagues, I am currently serving as the guest editor for Journal of Risk and Financial Management, special issue “Monetary policy in a globalized world”. We welcome your submissions. Special issue link: mdpi.com/journal/jrfm/s…

What are the impacts of FDI on financial inclusion? Do financial markets and institutional quality matter in this relationship? The answer is in our latest article published at Empirical Economics. link.springer.com/article/10.100…

Drawing Bluey and Bingo for my son.

The first of two papers on inflation. This one on US inflation. The second, to come out soon, on inflation in 11 countries, based on the work of national central bank teams. Meta conclusions very similar in the second paper. shorturl.at/txHM3

Are house prices of OECD countries converging? The answer is in our latest article below. onlinelibrary.wiley.com/doi/10.1111/sj…

Are you interested in learning about macroeconomic models with financial frictions? I make the full course material for my PhD class on this topic available here: econweb.umd.edu/~drechsel/teac… Happy semester start from Univ. of Maryland

“You dream of having a good career but this is over and on top of that. It’s a great surprise and honour.” Daron Acemoglu (Daron Acemoglu) reacting to the news of his prize in economic sciences today. Congratulations to our new laureate! #NobelPrize

Do people use procedures in making portfolio-choice decisions and which rules do they employ? In the September issue, by Yoram Halevy and Guy Mayraz zurl.co/nthT

New at JIE: "Monetary policy and exchange rate dynamics in a behavioral open economy model", by Marcin Kolasa, Sahil Ravgotra (Sahil Ravgotra), Pawel Zabczyk doi.org/10.1016/j.jint…

🎓 Funded PhD Opportunity Curtin University I’m recruiting a PhD student for a scholarship-funded project on Income Inequality and Public Health🌍📊 💻 Ideal for candidates skilled in MATLAB/Stata 📬 Open to domestic & international applicants 📅 Apply now! #EconPhD #CurtinUniversity

Excited to co-edit (with Prof. Felix Chan Felix Chan ) the 2nd Edition of JRFM’s Special Issue on Monetary Policy in a Globalized World 🌍💸 DSGE monetary policy papers especially welcome! 📅 Submit by 30 Apr 2026 🔗 mdpi.com/journal/jrfm/s… #DSGE #MonetaryPolicy