Government spending falls disproportionately on non-tradable services. We show empirically that government spending shocks stimulate private consumption along with sizable spillovers to the goods sector and a relative decline in goods prices. We rationalize these findings with a two-sector open-economy HANK model. Uninsurable income risk and precautionary savings lead to a persistent income-driven expansion in private consumption. In the tradable sector, import intensity and limited labor reallocation dampen wage pass-through to prices, matching observed co-movements.

Does the Federal Reserve’s monetary policy influence the rates on USD-pegged stablecoins? While major stablecoin issuers do not pay interest, investors can earn returns by depositing stablecoins in Decentralized Finance (DeFi) protocols. We document unusually large and persistent spreads between traditional short-term interest rates and DeFi deposit rates, as well as a weak and unstable transmission of policy rate changes.

General Motors once had the technology, talent, and partnership to lead the electric-vehicle revolution. Instead, it abandoned the EV1 and its battery venture while pouring billions into stock buybacks, helping turn an early American lead into decades of technological dependence.
Ovshinsky and Stempel
The planet is burning. The climate crisis is real. Our planet and the 8.3 billion people who call it home need a transportation-power revolution from fossil fuels to electricity.

AI bots are making more decisions on our behalf when we make travel arrangements. Shutterstock AIImagine telling your phone that you want a quiet boutique hotel near a city centre, below a certain price, with a decent breakfast and late checkout. A few seconds later, an AI assistant compares the options, explains why each one fits and helps complete the booking.