PhD Defense Drs. H.J. van Buggenum
Banks and Financial Markets in Microfounded Models of Money
This dissertation provides novel perspectives on economic phenomena related to the role of banks and financial markets by taking into account that such institutions create or redistribute assets that serve as payment instruments. To do so, the dissertation develops a series of microfounded models of money that adhere to the new monetarist tradition.The first part of the dissertation focuses on the creation of money-like assets by private intermediaries, such as banks. Chapter 2 investigates how an economy characterized by private money creation can be subject to self-fulfilling financial crises and recessions. Chapter 3 studies how the risk embedded in credit extension by banks can affect economic outcomes through the fact that credit extension and deposit creation are two sides of the same coin.The second part of the dissertation focuses on the current monetary policy environment, characterized by historically low nominal interest rates. Chapter 4 shows that the ability of financial markets to achieve a favorable distribution of savings is impaired when nominal interest rates are at the zero lower bound. Chapter 5 considers how optimal monetary policy depends on different types of heterogeneity across households and how this can push an economy towards or away from the zero lower bound.
Hugo van Buggenum (Veldhoven, 1992) grew up in the Brabantian town of Reusel. After completing his pre-university education at the Pius X-College (Bladel), he started his economics studies at Tilburg University in September 2011. He obtained a Bachelor degree in Economics and Business Economics in June 2014, a Master degree in Economics in June 2015, and a Research Master degree in Economics in July 2017. During his PhD studies (2017-2021), Hugo frequently visited the Chair of Economic Theory at the University of Basel, and in June 2019 he also visited Washington University and the Federal Reserve Bank of St. Louis. Hugo’s research interests are in macroeconomics, monetary economics, and financial economics.
- Location: Cobbenhagen building, Aula
- Supervisors: Dr. R.B. Uras, Prof. A. Berentsen
- Co-supervisor: Dr. F.J.T. Sniekers
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