Dirk Niepelt

Study Center Gerzensee
Neues Schloss
3115 Gerzensee

E-Mail: dirk.niepelt@szgerzensee.ch
Institutional Affiliations: Study Center Gerzensee and University of Bern

NBER Working Papers and Publications

May 2019On the Equivalence of Private and Public Money
with Markus K. Brunnermeier: w25877
We develop a generic model of money and liquidity that identifies sources of liquidity bubbles and seignorage rents. We provide sufficient conditions under which a swap of monies leaves the equilibrium allocation and price system unchanged. We apply the equivalence result to the "Chicago Plan,'' cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). In particular, we show why CBDC need not undermine financial stability.

Published: Markus K. Brunnermeier & Dirk Niepelt, 2019. "On the Equivalence of Private and Public Money," Journal of Monetary Economics, . citation courtesy of

September 2017Sovereign Bond Prices, Haircuts and Maturity
with Tamon Asonuma, Romain Rancière: w23864
Rejecting a common assumption in the sovereign debt literature, we document that creditor losses ("haircuts") during sovereign restructuring episodes are asymmetric across debt instruments. We code a comprehensive dataset on instrument-specific haircuts for 28 debt restructurings with private creditors in 1999-2015 and find that haircuts on shorter-term debt are larger than those on debt of longer maturity. In a standard asset pricing model, we show that increasing short-run default risk in the run-up to a restructuring episode can explain the stylized fact. The data confirms the predicted relation between perceived default risk, bond prices, and haircuts by maturity.

Published: Tamon Asonuma & Dirk Niepelt & Romain Ranciere, 2017. "Sovereign Bond Prices, Haircuts and Maturity," IMF Working Papers, vol 17(119).

March 2016Sovereign Debt with Heterogeneous Creditors
with Harris Dellas
in NBER International Seminar on Macroeconomics 2015, Michael B. Devereux, Francesco Giavazzi, and Kenneth D. West, editors

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