Campus Tilburg University hoogleraren

PhD Defense Drs. H.J. van Buggenum

Date: Time: 13:30 Location: Aula

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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