Staff working papers

Stagflation and Topsy-Turvy Capital Flows

Staff Working Paper 2022-46 Julien Bengui, Louphou Coulibaly
Unregulated capital flows are likely excessive during a stagflation episode, owing to a macroeconomic externality operating through the economy’s supply side. Inflows raise domestic wages and cause unwelcome upward pressure on firm costs, yet market forces likely generate such inflows. Optimal capital flow management instead requires net outflows.

A Macroprudential Theory of Foreign Reserve Accumulation

Staff Working Paper 2019-43 Fernando Arce, Julien Bengui, Javier Bianchi
This paper proposes a theory of foreign reserves as macroprudential policy. We study an open-economy model of financial crises in which pecuniary externalities lead to overborrowing, and show that by accumulating international reserves, the government can achieve the constrained-efficient allocation.

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Journal publications

Refereed journals

"Financial Safety Nets"
(with Javier Bianchi and Louphou Coulibaly), International Economic Review, February 2019.

"Liquidity Traps, Capital Flows"
(with Sushant Acharya), Journal of International Economics, September 2018.

"Asset Pledgeability and Endogenously Leveraged Bubbles"
(with Toan Phan), Journal of Economic Theory, September 2018.

"Consumption Baskets and Currency Choice in International Borrowing"
(with Ha Nguyen), Journal of International Money and Finance, October 2016.

"Capital Mobility and International Sharing of Cyclical Risk"
(with Enrique Mendoza and Vincenzo Quadrini), Journal of Monetary Economics, January 2013.


"Slow Recoveries and Unemployment Traps: Monetary Policy in a Time of Hysteresis"
(with Sushant Acharya, Keshav Dogra and Shu Lin We), updated March 2021, conditionally accepted at Economic Journal

Work in progress

"Macroprudential Policy with Leakages"
(with Javier Bianchi)

"​Macroprudential Policy Coordination"

"​​System Risk and Inefficient Debt Maturity"