Working Papers 

Breaking the Trilemma: Seigniorage, Endogenous Remittances, and Digital Currencies,  joint with Remco C.J. Zwinkels

• A model of central bank balance sheets and digital payment flows for small open economies with exchange rate pegs, with the design of a novel monetary policy tool (central bank profit rebate) to relax the trilemma constraint. 

• This paper is prepared under the Thematic Research Fellowship Programme by the Hong Kong Institute for Monetary and Financial Research, Hong Kong Monetary Authority.

Bankruptcy Codes and Risk Sharing of Currency Unions  (Under Revision)

Previously circulated as "When Do Currency Unions Benefit from Default?" 

Finalist of the ECB Young Economist's Competition

• Bankruptcy code design of the Capital Markets Union to improve banking stability in a currency union without a common fiscal budget

Presentations: 2021 European Summer Meeting of the Econometric Society, 2021 North American Summer Meeting of the Econometric Society, Seminar at DG ECFIN European Commission, 2021 IBEFA Summer Meeting, Fed San Francisco (presentation), 2020 ECB Young Economist's Competition Finalist, UChicago BFI Macro Finance Research Summer Session for Young Scholars (scheduled), 35th Annual Congress of EEA, IWH-Fin-Fire Workshop, Junior European Finance Seminar, 2020 Annual Meeting of the Central Bank Research Association CEBRA, 2020 Royal Economic Society Conference General Sessions, London FIT (Financial Intermediation Theory) workshop, HEC Paris PhD Finance Workshop, Saïd Business School FAME seminar, Oxford Inter-departmental Macro-Finance Doctoral Research Workshop.

Corporate Legacy Debt, Inflation, and the Efficacy of Monetary Policy,  joint with Charles A.E. Goodhart, M. Udara Peiris, and Dimitrios P. Tsomocos  (Under Revision)

CEPR Discussion Paper Series DP16799

• High levels of corporate debt render contractionary monetary policy less effective in controlling inflation and introduce a Giffen-like property to demand for output, aggravating the trade-off between output and inflation stabilisation

Presentation: 2024 AEA (scheduled), IBEFA Annual Meeting at the 2023 ASSA Meetings in New Orleans, 2022 European Economic Association Annual Congress, Bocconi, Milan , 2022 CEBRA Annual Meeting, UPF, Barcelona, European Central Bank DGMF seminar series.

Media: VoxEU, Canadian C.D. Howe Institute 

Sustainable Investing and Public Goods Provision, joint with Ilaria Piatti and Joel Shapiro. 

• The rise of sustainable investing comes coupled with the question of what impact it has. We introduce a public good in an equilibrium asset pricing model to provide new asset pricing implications and capital allocation between private and public goods.

Presentation: 2024 AEA, 2022 First Sustainable Finance Conference by Department of Finance, University of Luxembourg , 2022 NEOMA Sustainable Finance Conference, Paris, Finance Seminar at Queen Mary University of London, 2022 INSEAD Finance Symposium.

Designing Financial Support for SMEs during Crises: the Role of Bank Lending,  joint with Tianxi Wang

Tinbergen Institute Discussion Paper Series 

• A theory to show the government financial support can exploit the information in the borrower loan demand to alleviate asymmetric information and to improve policy targeting.

Presentation: 2023 Royal Economic Society and Scottish Economic Society annual meeting in Glasgow (scheduled), 2023 FMA European Meeting (scheduled), 2023 Asian Meeting of the Econometric Society, Singapore

Publications:

Support for Small Businesses amid COVID-19,  joint with Charles A.E. Goodhart and Dimitrios P. Tsomocos 

Economica, Vol 90, Issue 358, April 2023, https://doi.org/10.1111/ecca.12460

AEA Meetings, Media: VoxEU , Economisch Statistische Berichten 105(4789), 10 Sep 2020 P405.

• Two-sector macro model with a screening contract to assess the government's loan support for SMEs with the trade-off between short-run employment stabilisation and long-run allocative efficiency.

Bank Credit, Inflation and Default Risks over an Infinite Horizon, joint with Charles A.E. Goodhart and Dimitrios P. Tsomocos  Finalist of the Best Research Paper at 2021 IFABS Meeting

Journal of Financial Stability, 67,p.1-16, August 2023

• Money, Fiscal, and Banking in a macro-finance model on the interplay between the financial wedge and monetary policy.

Wang, X., Discussion of ''The Asymmetric Impact of COVID-19: A Novel Approach to Quantifying Financial Distress across Industries''

European Economic Review, 157, p.1-44., 104501, August 2023

Banks, Money, and the Zero Lower Bound on Deposit Rates, joint with Michael Kumhof                    

Journal of Economic Dynamics and Control, Vol 132, November, 2021

• Banking and liquidity creation in a New Keynesian model on the peril of 'contractionary' monetary easing and the flattening of the Phillips curve.

A Macro-Financial Perspective to Analyse Maturity Mismatch and Default  

Journal of Banking and Finance, 23 March 2022, 106468

• Endogenous default, liquidity creation, and banks' costly monitoring to assess the Net Stable Funding Ratio on credit quality and the transmission of monetary policy.

Debt Restructuring in the Eurozone, joint with Dimitrios. P. Tsomocos

• A non-technical paper published as a book chapter in “The Economics of Monetary Unions. Past Experiences and the Eurozone” Castaneda, Roselli and Wood (Editors). Routledge Academic Publishing, 2020. 

Referee Service: 

Journal of Economic Theory, Journal of Money, Credit and Banking, European Economic Review, Economic Theory, International Journal of Central Banking, Scottish Journal of Political Economy, China Economic Review