Tag Archives: Research

“A needed, up-to-date primer on macroeconomic theory. It is comprehensive, covering all the essential topics, from optimal consumption and labor supply to economic growth, business cycles, and asset markets. It is thorough and rigorous, yet accessible, as it requires little prior knowledge of the key concepts and mathematical tools.” —George-Marios Angeletos, Professor of Economics, MIT (To be continued.) Forthcoming, MIT Press. Book page.

“This book provides an excellent introduction into dynamic macroeconomics. Its analysis is deep, self-contained, and still concise. The chapters on labor search frictions, financial frictions, and money are an extra plus and make it a superb choice for a first-year PhD or advanced Masters’ course in macroeconomics.” —Markus Brunnermeier, Edwards S. Sanford Professor of Economics, Princeton University (To be continued.) Forthcoming, MIT Press. Book page.

“An orderly and elegant presentation of essential ideas of modern macroeconomics with a perfect mix of tools and applications.” —Thomas Sargent, Professor of Economics, New York University (To be continued.) Forthcoming, MIT Press. Book page.

There is widespread international interest in CBDC, Libra, and the like. E.g., my VoxEU column on Libra and CBDC is discussed on the Czech news platform patria.cz. And my JME paper with Markus Brunnermeier is discussed on the Turkish site digitalage.com.tr.

Journal of Monetary Economics, with Markus Brunnermeier. PDF. When does a swap between private and public money leave the equilibrium allocation and price system unchanged? To answer this question, the paper sets up a generic model of money and liquidity which identifies sources of seignorage rents and liquidity bubbles. We derive sufficient conditions for equivalence and apply them in the context of the “Chicago Plan”, cryptocurrencies, the Indian de-monetization experiment, and Central...

Accepted for publication in the Journal of Monetary Economics, with Markus Brunnermeier. (NBER wp.) When does a swap between private and public money leave the equilibrium allocation and price system unchanged? To answer this question, the paper sets up a generic model of money and liquidity which identifies sources of seignorage rents and liquidity bubbles. We derive sufficient conditions for equivalence and apply them in the context of the “Chicago Plan”, cryptocurrencies, the Indian...

Jusletter, 1 July 2019, with Corinne Zellweger-Gutknecht. PDF. Libra is supposed to be backed; the returns on the securities backing it are going to be distributed among the Libra partners; and Libra’s price is supposed to be managed by a network of market makers. We don’t know much more. Will market makers have the incentive to deliver?

CEPR Discussion Paper 13778, June 2019, with Markus Brunnermeier. PDF. (Local copy of NBER wp.) We develop a generic model of money and liquidity that identifies sources of liquidity bubbles and seignorage rents. We provide sufficient conditions under which a swap of monies leaves the equilibrium allocation and price system unchanged. We apply the equivalence result to the “Chicago Plan,” cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). In...

Central Banking reports about the new working paper by Markus Brunnermeier and myself.

NBER Working Paper 25877, May 2019, with Markus Brunnermeier. PDF. (Local copy.) We develop a generic model of money and liquidity that identifies sources of liquidity bubbles and seignorage rents. We provide sufficient conditions under which a swap of monies leaves the equilibrium allocation and price system unchanged. We apply the equivalence result to the “Chicago Plan,” cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). In particular, we...