Corporate Cash Accumulation During the COVID-19 Pandemic
Cash holdings of U.S. nonfinancial (publicly traded) corporations increased notably during the recent COVID-19 pandemic. As depicted in Figure 1, the median cash-to-assets ratio (black, solid line) – which
A Roadmap for the Federal Reserve's 2025 Review of Its Monetary Policy Framework
The Federal Reserve's first formal, public review of its monetary policy framework (MPF) was completed in 2020 and included a plan to review monetary policy strategy, tools, and
Decoding the Productivity Puzzle: A New Perspective on the Relationship between Remote Work and Productivity
Over the past decade, the relationship between remote work and productivity has drawn increasing attention from researchers, especially after the unprecedented
U.S. Reciprocal Tariff Announcement and European Bank Stock Performance
European bank equity prices fell sharply following the April 2, 2025, U.S. reciprocal tariff announcement, reflecting investor concerns about rising trade tensions and their potential impact
Saving rates are significantly different across countries and remain different for long periods of time. This paper provides an explanation for this phenomenon. We formalize a model of a world economy comprised of open economies inhabited
Why are Manufacturing Plants Smaller in Developing Countries? Theory and Evidence from India
Poorer countries (and poorer states within India) have a larger share of manufacturing employment in small plants. This paper presents empirical evidence and a theoretical
Real Exchange Rate and Net Trade Dynamics: Financial and Trade Shocks
This paper studies the drivers of the US real exchange rate (RER), with a particular focus on its comovement with net trade (NT) flows. We consider the entire spectrum of frequencies, as the