Itamar Drechsler (Wharton) on Monetary Policy, Risk Premia, Liquidity [Lecture #4, Macro Finance SS]
Itamar Drechsler from Wharton gave a 3-hour lecture during the Macro Finance Summer School 2020. Itamar Drechsler does research in Asset Pricing, Financial Intermediation, Macro-finance, Monetary Policy (Fed), see more details on his web-site: https://sites.google.com/site/idrechsl/. The title of the lecture is "Monetary Policy, Risk Premia, and Liquidity". If you are doing PhD in Economics or PhD in Finance, you might find this lecture interesting.
Nick Roussanov (Wharton) does the introduction of the speaker. This was the 4th lecture of the Macro finance summer school 2020. Here you can find the full schedule (5 lectures) of the MFS-Wharton Virtual Summer School as well as the slides of presenters:
https://macrofinancesociety.org/mfs-w...
Selected papers by Itamar Drechsler:
Banking on Deposits: Maturity Transformation Without Interest Rate Risk (with Alexi Savov and Philipp Schnabl), https://papers.ssrn.com/sol3/papers.c...
Liquidity, Risk Premia, and the Financial Transmission of Monetary Policy (with Alexi Savov and Philipp Schnabl), https://sites.google.com/site/idrechs...
The Deposits Channel of Monetary Policy (with Alexi Savov and Philipp Schnabl), http://papers.ssrn.com/sol3/papers.cf...
A Model of Monetary Policy and Risk Premia (with Alexi Savov and Philipp Schnabl), http://papers.ssrn.com/sol3/papers.cf....
The mission of the Macro Finance Society (https://macrofinancesociety.org/) is to advance and disseminate high-quality research in Macro Finance, which is a broad area at the intersection of financial economics and macroeconomics. The research conducted at The Society emphasizes microeconomic foundations via (dynamic) structural modeling, while being grounded in the data. Members of The Society consist of both financial economists and macroeconomists, who share the common goal of advancing and disseminating high-quality research in Macro Finance.
Macro-finance addresses the link between asset prices and economic fluctuations. Macroeconomics (from the Greek prefix makro- meaning "large" + economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. Macroeconomists study topics such as GDP, unemployment rates, national income, price indices, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance. Asset prices are the prices for which financial instruments, such as stocks, bonds, currencies, etc., are bought and sold.
Monetary policy is policy adopted by the monetary authority of a nation (Central Bank) to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate to ensure price stability and general trust of the value and stability of the nation's currency. Monetary policy in the United States comprises the Federal Reserve's actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates--the three economic goals the Congress has instructed the Federal Reserve to pursue. The Federal Reserve conducts the nation's monetary policy by managing the level of short-term interest rates and influencing the overall availability and cost of credit in the economy. Monetary policy directly affects short-term interest rates; it indirectly affects longer-term interest rates, currency exchange rates, and prices of equities and other assets and thus wealth. Through these channels, monetary policy influences household spending, business investment, production, employment, and inflation in the United States.
MFS web-site: https://macrofinancesociety.org/