Martin Lab

Research focus

ERC Advanced Grant · 2021

Macroeconomic trends and the efficiency of financial markets

Financial markets constitute the backbone of modern economies, intermediating resources from those who have them (i.e., lenders) to those who can put them to productive use (i.e., borrowers). A defining feature of these markets is that lenders give up goods today in exchange for a promise to receive goods in the future. Clearly, these promises are only valuable if they are expected to be honoured. We can think of promises as being backed by collateral, which – for the purpose of this proposal – I use as a generic term to denote the stream of future income that borrowers can credibly pledge. It is an economy’s stock of collateral that determines the amount and type of promises that can be…

From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.