Qing Liu MA, Economics, University of British Columbia ( ) 1999 MA, Economics, Zhejiang University, China ( )

Transcription

1 Business Address Web: Home Address Suite 650A 60 Harbord Street Toronto, ON, Canada, M5S 3L1 Phone: +1 (416) Citizenship Languages Research Interests Teaching Interests Chinese English, Chinese International Economics Monetary Economics (at both graduate and undergraduate level) International Economics (Trade and Open-Economy Macro) Macroeconomics Monetary Economics Financial Economics Econometrics Education Awards PhD, Economics, (expected completion: 2008) Dissertation: Essays on International Economics Committee: Shouyong Shi (supervisor), Miquel Faig, Xiaodong Zhu 2002 MA, Economics, University of British Columbia ( ) 1999 MA, Economics, Zhejiang University, China ( ) 1996 BA, MIS, Xinjiang University of Finance and Economics, China ( ) Fellowship, Connaught Scholarship, Graduate Fellowship, Zhejiang University, First Prize Scholarship, Xinjiang University of Finance and Economics,

2 Publications and Research Papers The Volatility of Exchange Rates in a Search Model (job market paper), 2007 Currency Areas and Monetary Coordination, with Shouyong Shi, 2007 (under review) A Fit Group or a Messy Crowd? - A Dynamic Evaluation of Inter-firm Group Fitness in the Global Airline Industry, with Yanfei Zhao, 2007 (under review) Dollarization and Currency Unification, (in progress) A Discussion of the Patterns of M&A in China (Chinese), with Hao Song, Finance & Trade, May, 1999 An Analysis of the Financial Crisis in Southeast Asia (Chinese), with Hao Song, World Economic Papers, June, 1998 Professional Experience : Teaching Assistant, (Duties: Conducted tutorials and graded problems and examinations) Risk Management for MFE students International Economics for third year undergraduates Monetary Economics for third year undergraduates Advanced Economic Theory - Macro for third year undergraduates Topics in Economic Growth for third year undergraduates Macroeconomic Theory and Policy for second year undergraduates Microeconomic Theory for second year undergraduates Quantitative Methods for second year undergraduates Introduction to Economics for first year undergraduates : Research Assistant, Assisted Professor Shouyong Shi with the Chinese version of the paper Viewpoint: A Micro Foundation of Monetary Economics Assisted Professor Xiaodong Zhu with the computation of a growth model with one goods and two technologies : Teaching Assistant, University of British Columbia (Duties: Conducted tutorials and office hours; graded problems) Macroeconomic Theory for second year undergraduates 2

3 : Lecturer, Zhejiang Gongshang University, China Courses Taught: Investment Banking for fourth year undergraduates Financial Futures and Options for third year undergraduates The Principle of Futures and Options for second year undergraduates Conferences and Invited Seminar Presentations Presenting Currency Areas and Monetary Coordination at Canadian Economic Association Annual Meeting, Halifax, June 2007 Midwest Macroeconomics Meetings, Federal Reserve Bank of Cleveland, May 2007 Summer Workshop on Money, Banking and Payments, Federal Reserve Bank of Cleveland, August 2006 Far Eastern Meeting of the Econometric Society, Tsinghua University, July 2006 Society for Economic Dynamics Meetings, Budapest, July 2005 Participant at Research on Money and Markets,, Financial Frictions and the Macroeconomy Workshop, Bank of Canada, November 2005 Canadian Macroeconomics Study Group, Université du Québec à Montréal, November, 2004 Conference on Matching,, May 2004 Canadian Macroeconomics Study Group,, November 2003 Professional Service and Affiliations Referee: Canadian Journal of Economics Help organizing: Conferences on Research on Money and Markets, Memberships: Canadian Economics Association American Economic Association 3

4 References Professor Shouyong Shi phone: +1 (416) Professor Xiaodong Zhu phone: +1 (416) Professor Miquel Faig phone: +1 (416) Professor Michael B. Devereux University of British Columbia East Mall Vancouver, B.C., Canada, V6T 1Z1 phone: +1 (604)

5 Dissertation Abstract Qing Liu Essays on International Economics This thesis uses a unified framework to study three issues in international economics: monetary coordination between currency areas, the volatility and persistence of exchange rates, and the causes of dollarization and welfare benefits of currency unification. Deviating substantially from the literature, this framework integrates recent developments in monetary search theory into international economics to derive the role of currencies in a two-country, two-currency economy. The first paper analyzes monetary coordination between currency areas. We show that search frictions can generate the deviations from the law of one price and each country has temptation to exploit these deviations by inflation. Monetary coordination eliminates the inefficiency caused by inflation. The welfare gains from coordination increase when the two economies become more integrated. In contrast to traditional models, the need for coordination still exists even after we allow each country to directly tax foreign holdings of its currency. Highly volatile and persistent exchange rates have been a central issue in international business cycles. To study the behavior of exchange rates in an environment with search frictions, the second paper goes beyond the steady-state analysis and examines quantitatively the dynamic responses of the equilibrium to monetary growth shocks and technology shocks. In contrast to traditional models, even without any nominal rigidity, our model can generate enough volatility of exchange rates consistent with that in the data. The reason is that the fluctuations in exchange rates arise mainly from the deviations from the law of one price, which are generated by search frictions rather than nominal rigidity. In addition, the deviations from the law of one price depend critically on the differential between the country's valuations of the two currencies. Because money growth shocks directly affect this differential, they account for a larger part of the volatility in exchange rates than productivity shocks. We also compare the behavior of exchange rates under different exchange regimes. Consistent with empirical findings, the model shows a sharp increase in the volatility of exchange rates when moving from a pegged to a floating regime, while the fluctuations of output and consumption do not change systematically with the exchange rate regime. Moreover, the comovements of output and consumption across countries are higher under a fixed rate regime than under a flexible rate regime. The main focus of the third paper is on the issues of dollarization and currency unification. The paper tries to analyze the causes and the benefits of currency substitution. The model shows that the size of a country and the differential in the two countries' money growth rates are the main factors that influence the choice of currencies. People are more willing to trade with the currency with a lower inflation rate or issued by a big country. Full dollarization can arise when the differences across countries are big enough. We also quantitatively evaluate the welfare benefits of currency unification, as well as the costs of fighting the dollarization. The framework applied in these papers is quite novel and tractable. In contrast to traditional models which impose ad hoc assumptions on the role of money, such as money in the utility function or cash-in-advance-constraints, this framework generates values for the currencies from preferences and technologies described in the model. Thus, the framework is well-suited to deal with the issues of exchange rates and currency competition. We hope that it will be used in the future for policy analysis. 5