Guido Lorenzoni

TL;DR: The authors developed a model of investment with financial constraints and used it to investigate the relation between investment and Tobin's q, and presented a calibrated version of the model, which, due to this effect, generates realistic correlations between investment, q and cash flow.

TL;DR: In this article, the authors present a business cycle driven by shocks to consumers' expectations regarding aggregate productivity, and they show that the fraction of short run fluctuations explained by the news shocks is increasing in the level of idiosyncratic noise and is non-monotone in the precision of the public signal.

TL;DR: In this article, the authors present a model of irreversible destruction where exchange rate intervention may be justified if the export sector is financially constrained, but the criterion for intervention is not whether there are bankruptcies or not, but whether these can cause a large exchange rate overshooting once the factors behind the appreciation subside.

TL;DR: In this paper, the authors develop a simple theory of capital controls as dynamic terms-of-trade manipulation and show that capital controls are not guided by the absolute desire to alter the intertemporal price of the goods produced in any given period, but rather by the relative strength of this desire between two consecutive periods.

TL;DR: In this article, the authors consider a decentralized model of trade, where agents may use credit or money to buy goods, and they build a model where the presence of liquidity constraints tend to magnify the economy's response to aggregate productivity shocks.