Tomás Enrique Caravello

@paudonaldson @BrownUniversity @UCSDEcon Felicitaciones!

Thank you, Sebnem! I’m thrilled to join the Economics Department at @BrownUniversity this fall and to become part of such a fantastic community! I’m deeply grateful to my advisors, the macro group at @UCSDEcon, and to my family and friends for their constant support. GRACIAS!

1/ New paper: "FCI-star" with Ricardo Caballero and @TomasCaravello We introduce FCI*—the neutral level of financial conditions that closes the output gap Think of it as the analogue of r*, but for the broader financial conditions that actually drive monetary transmission

Introducing FCI* (Financial Conditions Indices), the neutral level of financial conditions that closes output gaps. FCI gaps—difference between FCI and FCI*—better reflect monetary policy stance than rate gaps, from Ricardo J. Caballero, @tomycaravello, and @alpsimsek_econ nber.org/papers/w33952

New CEPR Discussion Paper - DP20362 FCI-Star Ricardo Caballero & Tomás Caravello @MITEcon, Alp Simsek @alpsimsek_econ @YaleSOM ow.ly/AFEb50WcHnG #CEPR_MEF #CEPR_AP #EconTwitter

@sarahmgertler @BarnardCollege @Columbia @MITEcon @NewYorkFed @DartmouthEcon Congrats Sarah!!!

I am so happy to share that I’ll be an Assistant Professor @BarnardCollege as part of the research community @Columbia . I am so grateful for all the support I have received throughout this process -- @MITEcon @NewYorkFed @DartmouthEcon -- thank you 🩵. I’m very lucky 😃🍀🗽

@ShinnKikuchi @GPS_UCSD Congrats Shin!!

The job market has wrapped up, and I am heading to San Diego! I have just accepted an offer to join the fantastic group at UCSD GPS @GPS_UCSD as an Assistant Professor. A huge thanks to my advisors, friends, in particular office mates, and family for their support.

@henry_h_zhang @townsend_rm Congrats!!

I am thrilled to announce that I will begin my career as an assistant professor at the Department of Finance at the CUHK Business School. I am incredibly grateful to my advisors at MIT, Rob Townsend @townsend_rm, Dave Donaldson, and Tong Liu, for their support and guidance. I look forward to developing my research agenda in an exciting and growing department in a beautiful location!

Financial conditions matter more than interest rates: A new framework for #monetarypolicy Ricardo Caballero & Tomás Caravello @MITEcon @MIT, Alp Simsek @alpsimsek_econ @YaleSOM ow.ly/vTQF50UMoVw

Despite the tightening of the Fed's policy rate, the #US economy has shown resilience. This suggests that households and firms react to changes in financial conditions rather than the policy rate itself. R Caballero & T Caravello @MITEcon, @alpsimsek_econ ow.ly/JPrW50UMoNL

1/🧵 The Fed has raised rates to historic levels, yet the economy keeps surprising on the upside. Today's strong jobs report is the latest example. Why? Our new paper suggests we're looking at the wrong indicator.

Proposing a VAR-Plus approach to construct policy counterfactuals without taking a stand on the shocks driving the cycle and applying it to US monetary policy, from @tomycaravello, @alisdairmckay, and @ChristianKWolf nber.org/papers/w32988

I’ve done a big update of my notes on computation for heterogeneous-agent macro. They start with the endogenous grid method and end with by solving a HANK model using sequence space Jacobians. Codes are in Julia. alisdairmckay.com/Notes/HetAgent…

🚨 New working paper! 🚨 Information experiments are a popular method for learning about effects of beliefs on actions. What are the key assumptions? What estimator should I use? @VilfortVod and I develop a formal framework to answer: arxiv.org/abs/2309.04793

Esta semana se graduaron dos amigos. Felicitaciones @marcdelabarrera y @skyvoelcker 🥳🥳

New paper with Ricardo Caballero & Tomas Caravello (@tomycaravello) We show that financial noise -asset demand and supply- affects financial conditions AND macroeconomic activity We show a central bank that targets financial conditions can mitigate the macro effects noise 1/n

Recently posted a new working paper on LPs vs. VARs, joint with @EricQian252, Mikkel, and Pepe: economics.mit.edu/sites/default/… Some quick thoughts below.

Cepo + Tasas bajas = Represión Financiera "Licuadora"... ¿Un mamarracho o tiene fundamento económico? ¿óptimo bajo algunas situaciones? Ofrezco este análisis normativo: video resumen corto de resultados e intuición. Proximo tweet: video completo + slides. 1/3

Con enorme tristeza, comunicamos el fallecimiento de Pablo Azcue, queridísimo director del Departamento de Matemáticas y Estadística de la Di Tella, y profesor investigador de nuestra universidad. Recordaremos siempre a Pablo con inmenso cariño y gratitud. En este momento de profundo dolor, enviamos nuestras condolencias a su familia, a sus amigos y a toda la comunidad ditelliana. bit.ly/4axjKD4

Hoy falleció Pablo Azcue, un gran profesor de matemáticas, gran colega en @utditella y mejor persona. Incontables generaciones de alumnos de @EconomiaDiTella escucharon sus tizas. Pablo, te vamos a extrañar.

@sarahmgertler @pmbruera Apparently our walls are very thin 😂

@pmbruera Shock monetario 👍👍

😂😂😂