【时间】9月8日 （本周四）上午10:00

【地点】文管大楼874

【题目】 Liquidity, Collateral Constraints, and Interest Rates

【讲座人】Dr. Zeng Zhixiong

【简介】Dr. Zeng Zhixiong is currently a Professor at Wenlan School of Business of Zhongnan University of Economics and Law. He obtained his Ph.D. degree in economics from Northwestern University (U.S.A.) in 2002. Since then, he held academic positions at the Chinese University of Hong Kong, China Center for Economic Research of Peking University, as well as Monash University (Australia). His research interests include applied economic theory, financial economics, macro and monetary economics, international economics, and the Chinese economy. He has published close to 20 articles in international referred journals such as Economic Theory, Journal of Banking & Finance, Real Estate Economics, Journal of Housing Economics, and International Journal of Production Economics, etc.

【摘要】We construct a model that integrates entrepreneurial activity and collateral con-straints into a New Monetarist framework with multiple liquid assets. In the model,interesting-bearing assets coexist with currency as means of payment in decentral-ized trade. There are banks that play dual roles—providing liquidity insurance and undertaking financial intermediation. Entrepreneurial borrowing from banks is subject to a collateral constraint, which gives rise to imperfections in the credit market. We formulate the optimal monetary policy problem in this environment,highlighting the constraint and tradeoff faced by the policy maker. It is shown that when credit market imperfections are operative, the celebrated Friedman rule is suboptimal, even when there are no costs of operating a currency system and when fiscal policy is purely passive. This is because the Friedman rule traps the real interest rate in its maximum possible value, which is detrimental to the entre-preneurs‘ external financing. A critical parameter for our analysis is the haircut on the collateral asset, which represents the severity of financial frictions.