Research
Publication
Inflation, Liquidity, and Long-run Growth, Macroeconomic Dynamics, 2019
In an economy with nominal debt, monetary expansion may mitigate liquidity risks of investment projects and stimulate economic growth in the long run. I also suggest that the magnitude of financial development and the aggregate liquidity demand help to explain the mixed empirical evidences.
Rational Bubbles in A Monetary Economy, Advances, B.E. Journal of Macroeconomics, 2018
Monetary policy determines the existence of rational bubbles. An expansionary monetary policy for improving social welfare may trigger asset bubbles and hurt the economy.
The Spirit of Capitalism and Rational Bubbles, Macroeconomic Dynamics, 2016
When will rational bubbles exist and what is bubbles' implication in an economy with status seeking? I also prove that there are multiple equilibria with stochastic bubbles, which burst with an exogenous probability.
Policy Suggestion: taxing wealth properly
Rational Equity Bubbles, Annals of Economics and Finance, 2013
When will rational equity bubbles exist in an economy with capitalism spirits and how does an innovation of technology trigger bubbles?
Inflation, Liquidity, and Long-run Growth, Macroeconomic Dynamics, 2019
In an economy with nominal debt, monetary expansion may mitigate liquidity risks of investment projects and stimulate economic growth in the long run. I also suggest that the magnitude of financial development and the aggregate liquidity demand help to explain the mixed empirical evidences.
Rational Bubbles in A Monetary Economy, Advances, B.E. Journal of Macroeconomics, 2018
Monetary policy determines the existence of rational bubbles. An expansionary monetary policy for improving social welfare may trigger asset bubbles and hurt the economy.
The Spirit of Capitalism and Rational Bubbles, Macroeconomic Dynamics, 2016
When will rational bubbles exist and what is bubbles' implication in an economy with status seeking? I also prove that there are multiple equilibria with stochastic bubbles, which burst with an exogenous probability.
Policy Suggestion: taxing wealth properly
Rational Equity Bubbles, Annals of Economics and Finance, 2013
When will rational equity bubbles exist in an economy with capitalism spirits and how does an innovation of technology trigger bubbles?
Working Paper
Liquidity Allocation and Endogenous Uncertainty, slides, 2019 AEA/ASSA Annual Meeting, 2019 WEAI, 2018 AMES, 2018 CMES, 2018 CES NA Conference
- Explore an endogenous liquidity allocation mechanism between real economy and financial markets by emphasizing the less liquidity of physical capital than its corresponding equity
- Be helpful to understand the weak investment and corporate saving glut during the recovery process of advanced economies from the Great Recession
The Liquidity Channel of Monetary Mechanism from the Perspective of Macro-Finance, working in process