Kilian Rieder

Kilian Rieder is a FWF Schrödinger Prize Fellow at Northwestern University‘s Department of Economics and Paris School of Economics. He is currently on leave from Oesterreichische Nationalbank (Eurosystem), where he worked as a principal economist in the Economic Analysis and Research Department. He is a research affiliate of the Centre for Economic Policy Research (CEPR) and SUERF – The European Money and Finance Forum. He obtained his PhD from Oxford University in 2018.

The project

Title: Targeted Monetary Policy : Quasi-experimental Evidence from Federal Reserve Interventions in 1920-1921

"Credit booms “gone bust” tend to end in financial crises which inflict large costs on creditors, tax payers and the real economy at large (Cerra and Saxena, 2008; Schularick and Taylor, 2012; Jordà et al., 2013; Romer and Romer, 2017). These pecuniary and aggregate demand externalities of unconstrained credit growth provide a clear rationale for financial stability policy (Stein, 2012; Farhi and Werning, 2016; Martinez-Miera and Repullo, 2019; Caballero and Simsek, 2020). Yet, the question which precise measures are most effective in reining in financial excesses remains subject to an ongoing debate (Gambacorta and Signoretti, 2014; International Monetary Fund, 2015; Svensson, 2017; Gourio et al., 2018; Schularick et al., 2021; Stein, 2021). Should central banks “lean against the wind” (LAW) using conventional interest rate hikes or are more targeted policies better suited to tame bank lending? Endogeneity concerns, regulatory arbitrage, and the fact that different tools are rarely employed simultaneously have so far thwarted empirical work on the relative effectiveness of financial stability policies. My project sets out to address this gap in the literature."

Hosting institution: Paris School of Economics (PSE)

Selective Bibliography

• “Dating the Lender of Last Resort” (with M. Anson, R. Thomas, both Bank of England, and D. Bholat, Barclays UK), The Economic Journal Vol.133(652), 1657–1676 (2023)
• “Supervision without Regulation: Discount Limits at the Austro-Hungarian Bank, 1909-1913” (with C. Jobst, Univ. of Vienna), The Economic History Review Vol.75(4), 1074–1109 (2023)
• “The (Not So) Quiet Period: Communication by ECB Decision-makers during Monetary Policy Blackout Days” (with P. Gnan, WU Vienna), Journal of International Money and Finance Vol.130, 1–15 (2023)
• “Monetary Policy Decision-Making by Committee: Why, When and How it Can Work”, European Journal of Political Economy Vol.72, 1–30 (2022)