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Hosted by David Beckworth of the Mercatus Center, Macro Musings is a podcast which pulls back the curtain on the important macroeconomic issues of the past, present, and future.

May 27, 2020

Alp Simsek is an associate professor of economics at MIT, and joins Macro Musings to talk about the link between financial markets, uncertainty and the COVID-19 crisis. Specifically, David and Alp discuss the dual absorption problem within financial markets, how supply shocks and demand shocks have inescapably become interwoven phenomenon, and why we should look to using macroprudential policy in the future.

 

The transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings

 

Alp’s Twitter: @alpsimsek_econ

Alp’s MIT profile: https://economics.mit.edu/faculty/asimsek

 

Related Links:

 

Bonus segment with Alp: https://youtu.be/eoGxYcWmH9E

 

*A Risk-centric Model of Demand Recessions and Speculation* by Ricardo Caballero and Alp Simsek

https://www.nber.org/papers/w23614

 

*A Model of Asset Price Spirals and Aggregate Demand Amplification of a ‘COVID-19’ Shock* by Ricardo Caballero and Alp Simsek

https://www.nber.org/papers/w27044

 

*Prudential Monetary Policy* by Ricardo Caballero and Alp Simsek

https://www.nber.org/papers/w25977

 

David’s blog: macromarketmusings.blogspot.com
David’s Twitter: @DavidBeckworth