Essays for equilibrium implementation in monetary models and international tradePublic Deposited
We tackle two important theoretical problems in macroeconomics and international economics. First, in macroeconomics, especially monetary economics, the models with a standard Taylor rule have multiple equilibria. This multiplicity is problematic since we do not have a theory to determine a price level. We propose a theory to pin down a price level, and discuss how our policy selects a unique equilibrium.', 'Second, we propose a unified framework which nests quantitative gravity models used in international trade. The unified approach allows us to derive counterfactual predictions independent of micro-foundations. We characterize our framework based on two key parameters, estimate them, and quantify the cost of trade war between China and US.