EN

讲座

    PHBS Seminar Series: Money and Credit: Theory and Applications

    2019-05-27 00:00:00


    Speaker: Liang Wang

    Date: Wednesday, May 29, 2019

    Time: 2:00pm-3:30pm

    Venue: Room 335, HSBC Business School Building

    Introduction

    Liang Wang is currently tenured associate professor at the Department of Economics in University of Hawaii, USA. He got his Ph.D. from the University of Pennsylvania. His main research fields are monetary economics, search theory, asset pricing, and labor economics. He has published in top journals including Journal of Economic Theory, Journal of Economic Dynamics and Control, Macroeconomic Dynamics.

    Abstract:

    We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Agents use cash and credit because the former (latter) is subject to the inflation tax (transaction costs). Frictions that make the choice of payment method interesting also imply equilibrium price dispersion. We derive closed-form solutions for money demand, and show how to simultaneously account for the price-change facts, cash-credit shares in micro data, and money-interest correlations in macro data. The effects of inflation on welfare, price dispersion and markups are discussed, as are nonstationary equilibria with dynamics in the price distribution.