Macro-Finance

A novel seek "Macro-Finance," based on a beak I gave at the University of Melbourne this Spring. I survey many electrical flow frameworks including habits, long run risks, idiosyncratic risks, heterogenous preferences, rare disasters, probability mistakes, as well as debt or institutional finance. I exhibit how all these approaches attain quite like results as well as mechanisms: the market's mightiness to deport jeopardy varies over time, alongside describe of piece of job organization cycles. I speculate alongside approximately unproblematic models that time-varying jeopardy premiums tin sack attain a theory of risk-averse recessions, produced past times varying jeopardy aversion as well as precautionary saving, rather than Keynesian menses constraints or new-Keynesian intertemporal substitution.