Essays in Macro-Finance
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This thesis is motivated by the financial crisis of 2007 and 2008. The financial crises posed a challenge for economics - both in terms of understanding the events that were unfolding and in terms of understanding the effectiveness of the policies that were put in place as a response. Broadly speaking, the first two chapters of this thesis contributes to the existing literature with respect to the former, while the last three chapters contributes with respect to the latter.