Prudential Policy with Distorted Beliefs
Award:Jalen LiRan WangAlex Kane
This project studies financial and monetary policy in economies in which borrowers and/or lenders may become excessively optimistic. We explore the different roles that belief distortions in the credit supply or demand side of the economy may have on the optimal regulation. The RA in this project will assist the researchers by reading and summarizing existing literature, verifying theoretical derivations, numerically solving equilibrium models, and empirically implementing econometric procedures in actual data.
Requisite Skills and Qualifications:
Please include with your application: i) a resume/cv, ii) a transcript with relevant coursework, and iii) a short paragraph explaining why you are interested in doing RA work in macro/finance topics.