What is the relationship between interest rates, financial stability, and the macroeconomy? In a three post series with 
@ozgeakinci @BenignoGianluca Ethan Nourbash and @Albert_Queralto  we look into this arguably timely question #interestrates #monetarypolicy #financialstability In the first post Financial Vulnerability and Macroeconomic Fragility we argue that the effects of an increase in interest rates on the macroeconomy depends on how vulnerable the financial system is libertystreeteconomics.newyorkfed.org/2023/05/financ… 2/n

@pilossopher @paulgp Usually when I see some attention-seeking garbage on twitter I just move on. But since you ask, @pilossopher, and since you find this stuff interesting, @paulgp ... 1/n @pilossopher @paulgp first, they generate data from the SW model and then use an R-pckge to find the mode. The results are not that surprising—it takes a lot of data to nail the true parameters, and for some you may not succeed at all even w lots of data because the model is not well identified 2/n