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411 Results

Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?

The COVID-19 pandemic has caused an atypical recession in which some sectors of the economy boomed and others collapsed. This required a unique fiscal policy reaction to both support firms and stimulate activity in sectors with slack. Was fiscal policy able to get where it was needed? Mostly, yes.

To Tokenize, or Not to Tokenize: The Design Question for a Central Bank Digital Currency

Staff working paper 2026-14 Jonathan Chiu, Cyril Monnet, Oliver Junye Xu
This paper develops a general equilibrium model to assess central bank digital currency (CBDC) design in a monetary system where traditional banks and “crypto banks” (i.e., banks that issue stablecoins) coexist. We compare tokenized and non-tokenized CBDC, showing that their desirability depends on the reliability of private money provision, the availability of collateral assets and the features of the crypto sector.

Monetary Policy and Redistribution in Open Economies

Staff working paper 2022-6 Xing Guo, Pablo Ottonello, Diego Perez
We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.

International Economic Sanctions and Third-Country Effects

Staff working paper 2023-46 Fabio Ghironi, Daisoon Kim, Galip Kemal Ozhan
We study the transmission and third-country effects of international sanctions. A sanctioned country’s losses are mitigated, and the sanctioning country’s losses amplified, if a third country does not join the sanctions, but the third country benefits from not joining.

An Anatomy of Firms’ Political Speech

Staff working paper 2024-37 Pablo Ottonello, Wenting Song, Sebastian Sotelo
We study the distribution of political speech across U.S. firms. We develop a measure of political engagement based on firms’ communications (earning calls, regulatory filings, and social media) by training a large language model to identify statements that contain political opinions. Using these data, we document five facts about firms’ political engagement.
Content Type(s): Staff research, Staff working papers JEL Code(s): D, D2, D22, D6, D63, G, G4, G41, L, L1, L11, L2, L20 Research Theme(s): Financial markets and funds management, Market structure

An Investigation into the Effects of Border Carbon Adjustments on the Canadian Economy

We examine the economic implications of border carbon adjustments (BCAs) for Canada. We find that, BCAs, in the form of import tariffs, reduce Canada’s carbon leakage and improve its competitiveness when Canada is part of a broad coalition of BCA-implementing countries. Welfare also improves when tariff revenues are transferred to households.
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