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Liquidity, Crisis and Public Policies: a Model-Based Approach



  • General description

    This course will introduce alternative macroeconomic frameworks with financial frictions to understand financial crisis, business cycles and public policy. First, the instructor will provide with a brief historical overview of financial crises and basic financial accelerator models which emphasizes the interaction between borrowing constraint, asset price and aggregate production. Then, the liquidity constraint will be introduced to examine the business cycles and monetary policy. Finally, the instructor will present and discuss financial intermediaries to study banking crisis, credit policy and macro prudential policy. By developing these frameworks, the course aims to develop a framework which will empower participants to understand the recent financial crisis and the roles of public policies.

  • Topics covered

    • Overview: Review old and recent financial crises and basic financial accelerator models
    • Liquidity and business cycles: Examine the interaction between liquidity constraints and business cycles
    • Financial intermediation: Study bank balance-sheet channel and bank-runs
    • Government Policy: The role of monetary and macro-prudential policies
    • Secular Stagnation: Causes and consequences of stagnation in Japan and Southern Europe

  • Meet the instructors

    Nobuhiro Kiyotaki is Professor of Economics at Princeton University. He received his PhD. at Harvard University. He has published widely in macroeconomics and monetary economics, including “Monopolistic Competition and the Effects of Aggregate Demand,” with Olivier Blanchard in 1987, “On Money as a Medium of Exchange,” with Randall Wright in 1989, and “Credit Cycles,” with John Moore in 1997. Kiyotaki also serves as an academic consultant for the Federal Reserve Bank of New York and the Federal Reserve Bank of Richmond. Among professional honors, Kiyotaki received 2014 Banque de France -Toulouse School of Economics Senior Prize in Monetary Economics and Finance, 2010 Stephen A. Ross Prize in Financial Economics and 1999 EEA Yrjo Jahnsson Award together with John Moore. He is a Fellow of Econometric Society and a Fellow of British Academy.

  • Prerequisites

    A Master’s Degree in economics is required to follow the course.

    A solid understanding of macro and micro economics, equivalent to the level of first-year graduate studies, is recommended.

  • Fees

    1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).

    1900€ – Private Sector.

    950€ – Academics (Full-time Professors, full-time PhD Students and full-time Research Associates). Please submit a certificate attesting your status of Professor, PhD Student or Research Associate to fbf@eui.eu before registering. FBF secretariat will provide you with a code to register. *Seats for academics are limited and assigned by the FBF secretariat on a case-by-case basis.

    The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.

    Please note that the payment must be settled two weeks before the start of the course.


    • In case a course is cancelled, registered participants will receive the full refund.
    • In case a course is moved to another date, registered participants have the following three options: request a voucher to attend another FBF course, transfer their registration to a colleague or request a refund.
    • Registered participants who have not yet paid the registration fee can cancel their participation until four weeks before the start of the course.

    For more details, please contact fbf@eui.eu
  • Practical information

    A certificate of attendance will be provided to all participants after the course.


    Please notice that the course dinner, and most of the social activities, will take place downtown.

    Recommended hotels in downtown Florence:

    Recommended hotels nearby the EUI:

    Suggested restaurants in Florence city centre


    On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.

    Privacy Notice

    The personal information you have provided will be processed in compliance with the EUI Privacy Statement for conferences. For general queries: fbf@eui.eu


    General information on local transport

    From Florence airport:

    Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.

    A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.

    The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.

    From the central railway station:

    Take bus n. 7 at the bus stop Stazione Nazionale in the direction “Fiesole Piazza Mino”, get off at the stop ‘San Domenico 01’. For bus routes and timetables consult the official timetable.

    Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafès (bar). Bus tickets can be purchased also on board with a contactless credit card (Mastercard, Maestro, Visa and V PAY).

    Private car

    From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.

    The EUI has several free parking areas available all over the Campus.