Professor Malamud's work cited in an ECB speech and presented at NBER
© 2019 EPFL
What determines the global role of the Euro in the international financial system? This question is key for understand the impact of the ECB policy of the economy.
A recent paper written by Egemen Eren (BIS) and Semyon Malamud finds that the currencies that become dominant in international financing are the ones whose central bank efficiently pursues an inflation stabilisation policy that eases real debt burdens of firms at times of distress.
As is explained in a recent speech by Benoît Cœuré, one of the key policy-makers at the ECB and a Member of the Executive Board of the ECB, at the Council on Foreign Relations, New York City, 15 February 2019, these findings have important implications for our understanding of the global financial system.
The paper of Eren and Malamud has also been selected for the prestigious National Bureau of Economic Research (NBER) conference on international financial markets.