Guido Lorenzoni

About

Guido Lorenzoni is a macroeconomist with interests in business cycles, international finance, monetary and fiscal policy, and financial crises. His research focuses on financial crises, sovereign debt, and the impact of housing wealth and household debt on aggregate consumption.

Research topics

• Market economy
• Monetary economics
• Economics
• Macroeconomics

Selected publications

• Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?

  2020 · 759 citations

  We present a theory of Keynesian supply shocks: supply shocks that trigger changes in aggregate demand larger than the shocks themselves. We argue that the economic shocks associated to the COVID-19 epidemic—shutdowns, layoffs, and firm exits—may have this feature. In one-sector economies supply shocks are never Keynesian. We show that this is a general result that extend to economies with incomplete markets and liquidity constrained consumers. In economies with multiple sectors Keynesian su…

  PublisherDOI

• Inflation is Conflict

  National Bureau of Economic Research · 2023-04-01 · 46 citations

  reportOpen access1st authorCorresponding

  This paper isolates the role of conflict or disagreement on inflation in two ways.In the first part of the paper, we present a stylized model, kept purposefully away from traditional macro models.Inflation arises despite the complete absence of money, credit, interest rates, production, and employment.Inflation is due to conflict; it cannot be explained by monetary policy or departures from a natural rate of output or employment.In contrast, the second part of the paper develops a flexible frame…

  PublisherDOI

• A Minimalist Model for the Ruble During the Russian Invasion of Ukraine

  National Bureau of Economic Research · 2022-04-01 · 26 citations

  report1st authorCorresponding

  This note isolates an overlooked economic force for the Ruble to appreciate in response to international sanctions limiting exports to Russia. The economic intuition is that when Russians are unable to buy the mix of foreign goods they wish, then foreign goods becomes less attractive, increasing the demand for domestic goods; to reestablish an equilibrium a real appreciation is needed to raise the relative price of domestic goods and incentivizing the accumulation of foreign assets and the impor…

  PublisherDOI

• Wage-Price Spirals

  Brookings Papers on Economic Activity · 2023-09-01 · 20 citations

  article1st authorCorresponding

  ABSTRACT: We interpret recent inflation experience through the lens of a New Keynesian model with price and wage rigidities and nonlabor inputs in inelastic supply. The model provides a natural interpretation of some features of the recent episode: an initial surge of noncore inflation, followed by a lagged response of core inflation and a further lagged, persistent response of wage inflation. The model also provides a natural way of discussing the role and the strength of wage-price spiral dyna…

  PublisherDOI

• Risk-Sharing Externalities

  Journal of Political Economy · 2022-08-30 · 16 citations

  articleOpen accessSenior author

  Financial crises typically occur because firms and financial institutions are highly exposed to aggregate shocks. We propose a theory to explain these exposures. We study a model where entrepreneurs can issue state-contingent claims to consumers. Even though entrepreneurs can use these instruments to hedge negative shocks, they do not necessarily do so because insuring against these shocks is expensive, as consumers are also harmed by them. This effect is self-reinforcing because riskier balance…

  PublisherOA PDFDOI

Recent grants

• Unemployment

  NSF · $232k · 2006–2011

Frequent coauthors

• Veronica Guerrieri

  University of Chicago

  70 shared

• Luigi Bocola

  64 shared

• Fernando Broner

  Pompeu Fabra University

  56 shared

• Sergio L. Schmukler

  52 shared

• Iván Werning

  46 shared

• Fabio Feriozzi

  Universitat Jaume I

  41 shared

• Fabio Castiglionesi

  41 shared

• Joseph Vavra

  University of Chicago

  39 shared

Education

• Ph.D., Economics

  Massachusetts Institute of Technology (MIT)

  2001

Awards & honors

• Alfred P. Sloan Research Fellowship
• Fellow of the Econometric Society

Similar researchers at University of Chicago

• Anil Kashyaph-84
• Lars Hansenh-80
• Erik Hursth-68