Working Papers From 2008 - Federal Reserve Bank of Richmond

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2008 Working Papers

Long-duration Bonds and Sovereign Defaults

By Juan Carlos Hatchondo & Leonardo Martinez
Working Paper 08-2
Released: May 2008

This paper extends the baseline framework used in recent quantitative studies of sovereign default by assuming that governments can borrow using long-duration bonds. Previous studies have assumed that governments can borrow using bonds that mature after...

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Inflation Dynamics with Search Frictions: A Structural Econometric Analysis

By Michael U. Krause, Thomas A. Lubik & David Lopez-Salido
Working Paper 08-1
Released: April 2008

The New Keynesian Phillips curve explains inflation dynamics as being driven by current and expected future real marginal costs. In competitive labor markets, the labor share can serve as a proxy for the latter. In this paper, we study the role of real...

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