Fernando Alvarez



Published Papers



“Cost of Inflation in Inventory Theoretical Models” with Francesco Lippi and Roberto Robatto. 

Review of Economic Dynamics, 2018, forthcoming.


“Price plans and the real effects of monetary policy”, with Francesco Lippi. Conditionally accepted in the  American Economic Journal: Macroeconomics.


"Capital Accumulation and International trade" Journal of Monetary Economics.

"Cash Burns: an inventory model with a cash-credit choice" with Francesco Lippi. Journal of Monetary Economics, Oct 2017, Vol 90.



"From Hyperinflation to Stable Prices: Argentina's Evidence on Menu Cost Models," with Andy Neumeyer, Martin Gonzalez-Rozada, and Martin Beraja. Conditionally accepted. The Quarterly Journal of Economics.


"Phillips curve with Observation and menu Costs” with Francesco Lippi and Luigi Paciello. Journal of European Economic .


"Are State and Time dependent models really different?," with Francesco Lippi and Juan Passadore. 2016 NBER Macroeconomic Annual, forthcoming.


"The real effects of monetary shocks in sticky price models: a sufficient statistic approach” with Herve LeBehin and Francesco Lippi. 2016,  Volume 106(10): 1–37, American Economic Review.


"Monetary Shocks in a Model with Inattentive Producers” with Francesco Lippi and Luigi Paciello. 2016,  April, Vol 83 (2): 421-459, Review of Economic Studies.


"Persistent Liquidity Effect and Long Run Money Demand,” with Francesco Lippi. 2014,  Vol. 6 No. 2, American Economic Journal: Macroeconomics.


"A Real Options Perspective on the Future of the Euro, with Avinash Dixit. 2013,  Carnegie-Rochester-New York Conference on Public Policy, April 2013, Volume 61, January 2014, Pages 78-109,  Journal of Monetary Economics


"The demand for liquid asset with uncertain lumpy expenditures,” with Francesco Lippi. 2013, Volume 60, Issue 7, October, Pages 753-770, Journal of Monetary Economics.


"Price setting  with menu cost for multi-product firms," with Francesco Lippi. 2014, January 2014 Volume 82, Issue 1,  Econometrica.


"Durable Consumption and Asset Management with Transaction and Observation Costs," with Luigi Guiso and Francesco Lippi. 2012, Vol. 102 No. 5, August, American Economic Review.

"Optimal Price Setting with Observation and Menu Costs," with Francesco Lippi and Luigi Paciello. 2011, forthcoming in Quarterly Journal of Economics [Link]


"Search and Rest Unemployment," with Robert Shimer. 2011, Econometrica, Vol. 79, pp. 75-122 [Link]


"Time-Varying Risk, Interest Rates, and Exchange Rates in General Equilibrium," with Andrew Atkeson and Patrick Kehoe.  Review of Economic Studies, July 2009, Vol 76, pp. 851-878 [Link]


"Financial Innovation and the Transactions Demand for Cash," with Francesco Lippi.  Econometrica, February 2009, Vol. 77, pp. 363-402 [Link]


"On the Sluggish Response of Prices to Money in an Inventory Theoretic Model of Money Demand," with Andrew Atkeson and Chris Edmond. The Quarterly Journal of Economics, August 2009, Vol. 124, pp. 911-967 [Link]


"General Equilibrium Analysis of the Eaton-Kortum Model of International Trade," with Robert E. Lucas, Jr. Journal of Monetary Economics, September 2007, Vol. 54, No. 6, pp. 1726-1768  [Link on ScienceDirect]  [Matlab Codes and Data]


"If Exchange Rates are Random Walks Then Almost Everything We Say About Monetary Policy Is Wrong," with Andrew Atkeson and Patrick Kehoe. American Economic Review, May 2007, Vol. 97, No. 2, pp. 339-345  [Link on JSTOR]


"Using Asset Prices to Measure the Persistence of the Marginal Utility of Wealth," with Urban Jermann. Econometrica, 2005, Vol. 73, No. 6, pp. 1977-2016 [Link on JSTOR]


"Using Asset Prices to Measure the Cost of Business Cycles," with Urban Jermann. Journal of Political Economy, 2004, Vol. 112, pp. 1223-1256 [Link on JSTOR]


"The Time Consistency of Monetary and Fiscal Policies," with A. Neumeyer and Patrick Kehoe. Econometrica, March 2004, Vol. 71, No. 2, pp. 541-567 [Link on JSTOR]


"Money, Interest Rates, and Exchange Rates with Endogenously Segmented Markets," with Andrew Atkeson and Patrick Kehoe. Journal of Political Economy, February 2002, Vol. 1, No. 110, pp. 73-112 [Link on JSTOR]


"Severance Payments in an Economy with Frictions," with Marcelo Veracierto. Journal of Monetary Economics, June 2001, Vol. 47, No. 3, pp. 477-498 [Link on ScienceDirect]


"Interest Rate and Inflation," with Robert E. Lucas, Jr. and Warren Weber. American Economic Review Papers and Proceedings, May 2001, Vol. 91, No. 2, pp. 219-225 [Link]


"Comment on Enrique Mendoza's 'On The Benefit of Dollarization when Stabilization Policy is Not Credible and Financial Markets Imperfect'," Journal of Money, Credit and Banking, May 2001, Vol. 33, No. 2, pp. 475-481 [Link on JSTOR]


"Efficiency, Equilibrium, and Asset Pricing with Risk of Default," with Urban Jermann. Econometrica, July 2000, Vol. 68, No. 4, pp. 775-797 [Link on Wiley Online Library]


"Social Mobility: The Barro-Becker Children Meet The Laitner-Loury Dynasties," Review of Economic Dynamics, January 1999, Vol. 2, No. 1, pp. 65-103 [Link on ScienceDirect]


"Labor Market Policies in an Equilibrium Search Model," with Marcelo Veracierto. 1999 NBER Macroeconomics Annual, Ben Bernanke and Julio Rotemberg, editors. [Link on JSTOR]


"Dynamic Programming with Homogeneous Functions," with Nancy Stokey. Journal of Economic Theory, September 1998, No. 82, pp. 167-189 [Link on ScienceDirect]


"Money and Exchange Rates in the Grossman-Weiss and Rotemberg Model," with Andrew Atkeson. Journal of Monetary Economics, Vol. 40, No. 3, December 1997, pp. 619-640 [Link on ScienceDirect]


"Banking in Computable General Equilibrium Economies," with Díaz-Giménez, Edward C. Prescott and Terry Fitzgerald. Journal of Economic Dynamics and Control, 1992, Vol. 16, No. 3 & 4, pp. 533-560 [Link on ScienceDirect]