Matteo Maggiori

Last updated
Matteo Maggiori
Born (1982-11-01) November 1, 1982 (age 41)
NationalityItalian
Academic career
Institution Stanford University
Field international macroeconomics and finance
Alma mater UC Berkeley (Ph.D., 2012)
ContributionsExchange Rate Models with Financial Frictions; International Role of the Dollar
AwardsBernacer Prize (2022); Andrew Carnegie Fellow (2022); Fischer Black Prize (2021); Guggenheim Fellow (2019); Carlo Alberto Medal (2019).

Matteo Maggiori (born November 1, 1982) is an Italian economist and the Moghadam Family Professor of Finance at the Stanford Graduate School of Business. [1] His research is in international macroeconomics and finance. He is the co-founder and director of the Global Capital Allocation Project, a research lab that studies how capital moves around the world to design better international economic policies. [2] He received several awards, including the 2021 Fisher Black Prize or an outstanding financial economist and the 2022 German Bernacer Prize for outstanding contributions in the fields of macroeconomics and finance. Maggiori has made a fundamental contribution to the economics of exchange rates. There is little doubt that his research has single-handedly moved FX research in a promising, novel direction. [3]

Contents

Research

His research is both theoretical and empirical and has included the analysis of exchange rate dynamics, global capital allocations, the international monetary system, reserve currencies, tax havens and offshore financial centers, the role of expectations in households' portfolio choice, and the effect of very long-run discount rates on climate finance. [4]

Together with Xavier Gabaix, Maggiori designed a model of exchange rate determination based on limited financial intermediation. In the Gabaix-Maggiori model, financial intermediaries earn a currency risk premium as compensation for currency exposure. As the intermediaries’ risk-bearing capacity increases, currency risk premia disappear, and uncovered interest parity is restored in FX markets. The Gabaix-Maggiori model revives and formalizes an older approach to exchange rate determination, the portfolio balance approach of Penti Kouri, that puts international capital flows front and center.

Maggiori has also developed models of the international monetary system that put limited risk bearing capacity of financial institutions and the fiscal capacity of the US government as foundations for the role of the dollar as a reserve currency. He highlighted the ``reserve currency paradox”, the fact that the US dollar appreciates during crises, even when the crises are centered in the US.

Together with Brent Neiman and Jesse Schreger, Maggiori documented new facts about global financial markets. They documented home-currency-bias, the tendency of investors to overweight bonds denominated in the investors’ domestic currency even while investing in foreign countries. They showed that the dollar is the only exception.

He is a contributor to the public debate on international economic policy in both the international [5] [6] and Italian media. [7] [8]

Honors

He received the 2021 Fisher Black Prize for an outstanding financial economist. [9] [10] He was awarded the 2022 German Bernacer Prize that is awarded annually to a European economist under age 40 who is judged to have made outstanding contributions in the fields of macroeconomics and finance. [11] In 2019, he received the Carlo Alberto Medal that rewards an Italian scholar under the age of 40 for outstanding contributions to economics. [12] He also received a Guggenheim Fellowship and a Carnegie Fellowship. [13] [14]

Related Research Articles

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<span class="mw-page-title-main">Monetary policy</span> Policy of interest rates or money supply

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John Harold Williamson was a British-born economist who coined the term Washington Consensus. He served as a senior fellow at the Peterson Institute for International Economics from 1981 until his retirement in 2012. During that time, he was the project director for the United Nations High-Level Panel on Financing for Development in 2001. He was also on leave as chief economist for South Asia at the World Bank during 1996–99, adviser to the International Monetary Fund from 1972 to 1974, and an economic consultant to the UK Treasury from 1968 to 1970. He was also an economics professor at Pontifícia Universidade Católica do Rio de Janeiro (1978–81), University of Warwick (1970–77), Massachusetts Institute of Technology, University of York (1963–68) and Princeton University (1962–63).

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Foreign exchange risk is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when the transaction is completed.

Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital account. These measures may be economy-wide, sector-specific, or industry specific. They may apply to all flows, or may differentiate by type or duration of the flow.

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References

  1. ↑ "Matteo Maggiori". Stanford Graduate School of Business. Retrieved 2023-01-29.
  2. ↑ "The Global Capital Allocation Project". The Global Capital Allocation Project. Retrieved 2023-01-29.
  3. ↑ Lustig, Hanno (October 2021). "Matteo Maggiori: Winner of the 2021 Fischer Black Prize". The Journal of Finance. 76 (5): 2087–2091. doi:10.1111/jofi.13075. ISSN   0022-1082. S2CID   239648653.
  4. ↑ "Matteo Maggiori". Matteo Maggiori. Retrieved 2023-01-29.
  5. ↑ "Matteo Maggiori on Who Really Owns Listed Chinese Companies". The Wire China. 2021-12-13. Retrieved 2023-01-29.
  6. ↑ "Tax Havens Obscured at Least $1.4 Trillion of Foreign Investment in China". Bloomberg.com. 2023-01-05. Retrieved 2023-01-29.
  7. ↑ Bricco, Paolo (2020-03-23). "Maggiori: "Il virus ha mutato il Dna della crisi"". Il Sole 24 ORE (in Italian). Retrieved 2023-01-29.
  8. ↑ Fubini, Federico (2021-12-01). "Da Roma a Stanford, giovani economisti (italiani) crescono". Corriere della Sera (in Italian). Retrieved 2023-01-29.
  9. ↑ "Announcement of 2021 Fischer Black Prize Winner". The American Finance Association. Retrieved 2023-01-29.
  10. ↑ Lustig, Hanno (October 2021). "Matteo Maggiori: Winner of the 2021 Fischer Black Prize". The Journal of Finance. 76 (5): 2087–2091. doi:10.1111/jofi.13075. ISSN   0022-1082. S2CID   239648653.
  11. ↑ admin3er38. "Announcement of 21th edition Prize Winner | Bernacer Prize -" (in European Spanish). Retrieved 2023-01-29.{{cite web}}: CS1 maint: numeric names: authors list (link)
  12. ↑ "2019 Carlo Alberto Medal goes to Matteo Maggiori | Collegio Carlo Alberto". 2019-10-01. Retrieved 2023-01-29.
  13. ↑ York, Carnegie Corporation of New. "Matteo Maggiori". Carnegie Corporation of New York. Retrieved 2023-01-29.
  14. ↑ "Matteo Maggiori". John Simon Guggenheim Memorial Foundation. Retrieved 2023-01-29.


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