Research

The Macroeconomic Consequences of Exchange Rate Depreciations
Recent, International Macro Jón Steinsson Recent, International Macro Jón Steinsson

The Macroeconomic Consequences of Exchange Rate Depreciations

Masao Fukui, Emi Nakamura, and Jón Steinsson

Regime-induced exchange rate depreciations are strongly expansionary. Net exports fall (ruling out an export led boom) and nominal interest rates rise (ruling out a monetary expansion). To explain these findings, we build a financially driven exchange rate model (FDX model) with a strong foreign credit channel. Our model is also consistent with exchange rate disconnect and the Mussa facts.

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The Slope of the Phillips Curve: Evidence from U.S. States
Monetary, Recent Rowdy Ferret Design Monetary, Recent Rowdy Ferret Design

The Slope of the Phillips Curve: Evidence from U.S. States

Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jón Steinsson

Quarterly Journal of Economics, 137(3), 1299-1344, August 2022.

Evidence from new state-level CPI data suggests the slope of the Phillips curve is small and was small during the 1980s. Volcker disinflation was mostly due to rapid downward shift in inflationary expectations.

AppendixState Level CPI Data (BETA) -- ReadMe for State Level CPIs

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A Plucking Model of Business Cycles
Recent, Employment Rowdy Ferret Design Recent, Employment Rowdy Ferret Design

A Plucking Model of Business Cycles

Stéphane Dupraz, Emi Nakamura, and Jón Steinsson

US unemployment strongly displays the asymmetry that increases in unemployment are followed by decreases of similar amplitude, while the amplitude of the increase is not related to the amplitude of the previous decrease. This fact favors the plucking view that recessions are shortfalls below a maximum level rather than fluctuations around a natural rate:

Code to Date Peaks and Troughs

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