Research

My research interest is in macroeconomics, banking, and credit cycles.

A central theme of my research is the interaction between bank balance sheets, credit allocation, and aggregate fluctuations. My work studies how bank leverage, equity, default risk, and asset-account structures shape monetary transmission and macroprudential policy. In several papers, I use dynamic general equilibrium models with financial frictions to examine how banks' borrowing and lending decisions can amplify shocks, generate credit and housing cycles, and create a role for policy tools that improve financial stability and welfare.

I am also interested in how expectations and learning affect business-cycle dynamics. My research on news-driven business cycles studies how forward-looking information about future productivity can influence current consumption, labor, and investment, and highlights the role of internal habit formation in generating positive aggregate comovement. Related work on econometric learning examines the stability of expectation formation when agents use bounded memory and observed state variables to make forecasts.

Published Papers

[1] “Habit formation and news-driven business cycles”, with Fengqi Liu and Jianpo Xue. Review of Economic Dynamics, (2025). [PDF] [Code]

[2] “Should macroprudential policy be countercyclical?” with Yoske Igarashi. Journal of Economic Dynamics and Control, (2024). [PDF] [Code]

[3] “Credit expansion, bank liberalization, and structural change in bank asset accounts” with Michael Fan. Journal of Economic Dynamics and Control, (2021). [PDF] [Code]

[4] “Bank equity and macroprudential policy”. Journal of Economic Dynamics and Control, (2016). [PDF] [Code]

[5] “Stationarity of econometric learning with bounded memory and a predicted state variable”, with Tatiana Damjanovic and Sarunas Girdenas. Economics Letters, (2015). [PDF] [Code]

Working Papers

[1] “Bank balance sheet cycles”.

[2] “Bank asset structures and monetary transmission”.

[3] “News-driven business cycles revisited: shock persistence matters”, with Kevin X.D. Huang, Fengqi Liu, and Jianpo Xue.

[4] “Bank default risk, limited liability, and overborrowing”, working in progress.

[5] “A narrow banking model” with Timothy Jackson, working in progress.

[6] “Learning and monetary policy in a medium-scale DSGE model” with Sarunas Girdenas.