Frontier Advanced Seminar Series in Economics No. 20

The Liquidity-Credit Linkage: A Macro-Analytical Framework

Speaker: Prof. Zhixiong ZENG (Nanchang University)

Host: Prof. Xiangjun MA (Liaoning University)

Introducer: Prof. Miaojie YU (Liaoning University)

Time: April 12, 2023 (Wednesday), 10:00-11:00 (UTC +08:00)

Venue: Conference Room on the base floor of Wuzhou Garden, Chongshan Campus, Liaoning University

Online Venue: Tencent Meeting (Meeting ID: 3007551 6895)

Language: Mandarin

Abstract：This paper aims to introduce a new framework for macroeconomic analysis, which delves into the interrelationships between monetary economics and financial economics. We distinguish the payment liquidity in the sense of monetary economics from the credit liquidity in the sense of financial economics. We also point out the close connection between the two liquidities through the key variable of interest rate, and on this basis we analyze the transmission mechanism and policy design of the liquidity policy. This framework integrates the theory of exchange friction of Modern Monetary Theory and the theory of credit friction in the macro-finance literature. The Ongoing research examines the costs and effects of the quantitative easing, which is characterized by central bank purchases of private sector assets.

Speaker Introduction: Zhixiong Zeng is a Professor from the School of Economics and Management at Nanchang University. He obtained his Ph.D. degree from Northwestern University. Before joining Nanchang University, He served in Chinese University of Hong Kong, Peking University, Monash University, and Zhongnan University of Economics and Law. His main research areas are Macroeconomics and Monetary Finance. He has published many papers in the top journals such as Management Science, Economic Theory, the Journal of Banking & Finance, and China Economic Quarterly.