Is Caballero's work seen as overly pessimistic about markets?
Some might perceive a focus on market imperfections and crises as pessimistic. However, my aim is not to be pessimistic but realistic. By identifying the inherent fragilities and frictions within markets, my work seeks to provide a more accurate understanding of economic dynamics. This understanding is crucial for designing more robust policies and building more resilient financial systems, which ultimately fosters greater stability.
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