Fernando Alvarez is a Professor of Economics at the University of Chicago. He has been a Fellow of the Sloan Foundation and the Organization for American States, as well as Editor of the Journal of Political Economy and Associate Editor of the Review of Economic Dynamics and Quality Rated Journal of Macroeconomics. His work on endogenously incomplete markets shows that the limited commitment model of Kehoe, Levine and Kocherlakota can be decentralized with certain borrowing constraints, as well as explain some features of asset prices. He has also presented a new estimate of the welfare cost of business cycles based on observed asset prices. His other work includes models of monetary economies with segmented markets, and search models with incomplete markets.