Seminar Series

2021 - 2022

Speaker: Matthieu Bouvard (TSE).

Title: “Financial Innovation, Aggregate Liquidity, 

and Coordination Failures”

joint with Adolfo de Motta (McGill U).

Date: Thursday, March 31st at 12h30 (Paris Time).

Abstract: We study an economy where positive spillover effects create strategic complementarities between firms’ investment decisions. Because firms are financially constrained, their ability to maintain investment also depends on the endogenous liquidity of their assets. Higher liquidity plays the individual role of relaxing firms’ financial constraints and the aggregate role of helping firms coordinate on Pareto-superior high-output outcomes. Because firms internalize the former but not the latter, aggregate liquidity can be inefficiently low. Financial innovation that improves firms’ ability to diversify idiosyncratic liquidity risk can have adverse welfare effects because it leads firms to hold less aggregate liquidity which exacerbates the coordination problem and increases the likelihood of a crisis.

You will find the paper attached. Bio: Here is a link to the speaker’s website

https://sites.google.com/site/matkbouvard/

You are cordially invited to participate to the seminar, which will take place in Room 311, Lascrosses building. For those who will not be in the room, please find the zoom link below:

https://tbs-education-fr.zoom.us/j/81480865102?pwd=M1kvL21xb2p5VitJWU5Gb1oyR296Zz09

Meeting ID: 814 8086 5102 Passcode: 334892

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr