Prospective economic developments depend on the behavior of consumer spending. A key question is whether private expenditures recover once social distancing restrictions [...]

This paper presents an equilibrium bond-pricing model that jointly explains the upward-sloping nominal and real yield curves and the violation of the expectations hypothe[...]

This paper studies risk premia in the foreign exchange market when investors entertain multiple models for consumption growth. Investors confront two sources of uncertain[...]

I study how the outcome of Bayesian persuasion depends on Sender's information. I consider a game in which, prior to Sender's information disclosure, Designer can restric[...]

I show that investor confidence (size of ambiguity) about future consumption growth is driven by past consumption growth and inflation. The impact of inflation on confide[...]

It has recently been suggested that price-level targeting (PLT) may be a superior approach to monetary policy than inflation targeting (IT) due to its ability to automati[...]

We examine the safety of government bonds in the presence of Knightian uncertainty amongst financial market participants. In our model, the information insensitivity of g[...]

The purpose of this paper is to make a quantitative contribution to the inflation versus price level targeting debate. It considers a policy-maker that can set policy eit[...]

How can policy-makers avoid large policy errors when they are uncertain about the true model of the economy? The author discusses some recent approaches that can be used [...]

The authors use the efficient hedging methodology for optimal pricing and hedging of equity-linked life insurance contracts whose payoff depends on the performance of sev[...]