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81 Results

The (Mis)Allocation of Corporate News

Staff Working Paper 2024-47 Xing Guo, Alistair Macaulay, Wenting Song
We study how the distribution of information supply by the news media affects the macroeconomy. We find that media coverage focuses particularly on the largest firms, and that firms’ equity financing and investment increase after media coverage. But these equity and investment responses are largest among small, rarely covered firms. Our quantitative studies highlight that the aggregate effects of media coverage depend crucially on how that coverage is allocated.
Content Type(s): Staff research, Staff working papers Research Topic(s): Financial markets, Firm dynamics JEL Code(s): D, D2, D22, D6, D61, L, L1, L11, L2, L20

The Role of International Financial Integration in Monetary Policy Transmission

Staff Working Paper 2024-3 Jing Cynthia Wu, Yinxi Xie, Ji Zhang
We propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We study the implications of financial integration on monetary policy transmission. Among various aspects of financial integration, the bond duration plays a major role. These results hold for conventional and unconventional monetary policies.

Model Uncertainty and Wealth Distribution

Staff Working Paper 2019-48 Edouard Djeutem, Shaofeng Xu
This paper studies the implications of model uncertainty for wealth distribution in a tractable general equilibrium model with a borrowing constraint and robustness à la Hansen and Sargent (2008). Households confront model uncertainty about the process driving the return of the risky asset, and they choose robust policies.
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