19 January 2018
Peripheral economies that implement macroprudential policies increase their monetary independence from central economies when the latter implement expansionary monetary policies. This is also the case when the peripheral economies run current account deficits or experience credit expansions, according to Joshua Aizenman
, Menzie D. Chinn
, and Hiro Ito
18 January 2018
In a study of why high-income families tend to eat more healthfully than the poor, Hunt Allcott
, Rebecca Diamond
, and Jean-Pierre Dubé
find that neighborhood environments do not have economically meaningful effects on healthy eating. Exposing low-income households to the same food availability and prices experienced by high-income households would reduce nutritional inequality by only 9 percent.
17 January 2018
Individuals’ beliefs about future house price changes are affected by recent house price experiences of geographically distant friends, a study by Michael Bailey
, Eduardo Dávila
, Theresa Kuchler
, and Johannes Stroebel
finds. More pessimistic homebuyers choose higher leverage, in particular in states where default costs are relatively low.