E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment

• The Macroeconomic Effects of Debt Relief Policies During Recessions

  Staff Working Paper 2023-48 Soyoung Lee

  A large-scale reduction in mortgage principal can strengthen a recovery, support house prices and lower foreclosures. The nature of the intervention shapes its impact, which rests on how resources are redistributed across households. The availability of bankruptcy on unsecured debt changes the response to large-scale mortgage relief by reducing precautionary savings.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Debt management, Housing JEL Code(s): E, E2, E21, E3, E32, E6

• Labour Supply and Firm Size

  Staff Working Paper 2023-47 Lin Shao, Faisal Sohail, Emircan Yurdagul

  This paper documents a systematic pattern of how wages, hours and their relationship vary across firms of different sizes. Using a model with heterogeneous firms and workers, we show how the interplay between wages, hours and firm size affect worker sorting and inequality.

  Content Type(s): Staff research, Staff working papers Topic(s): Firm dynamics, Labour markets JEL Code(s): E, E2, E24, J, J2, J3, J31

• Digitalization: Productivity

  Staff Discussion Paper 2023-17 Jeffrey Mollins, Temel Taskin

  We examine the relationship between digitalization and productivity, the factors that influence this relationship, and how digitalization’s effect on productivity could change firm behaviour.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Digitalization, Productivity JEL Code(s): E, E2, L, L1, L11, O, O4, O47, O5, O51