Fernando Mendo works for the research department at the Central Bank of Chile. His research interests lie in the intersection of macroeconomics and finance. His job market paper "Risk to Control Risk" studies the interactions between two different forms of endogenous risk: amplification of real fluctuations and the exposure to systemic runs of creditors.  It illustrates how economies with low fundamental volatility are unstable due to large endogenous risks. It also unveils a hidden risk regime in...