Senior Economist, Banque de France
Affiliate Professor, Paris School of Economics
Research Affiliate, CEPR
Macro Theory: Expectations and Learning
Money and the Credit Market
Information helps individuals to deal with fluctuations (the good face), but it also increases market fluctuations (the bad face).
An authority can credibly sustain the real value of fiat money only if agents trust that it will resist the temptation to raise seigniorage once they buy money.
Expectations-driven aggregate fluctuations may originate with small productivity shocks when agents learn from competitive prices. [slides]
We introduce Self-Confirming Equilibria in competitive search economies as potential explanation of credit freezes and the success of credit-easing policies. [slides]
Evidence shows that weak forms of Forward guidance can raise uncertainty. A market externality in the aggregation of information can explain this.
Banque de France
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