Multiple Equilibria and Financial Crises

February 27-28, 2016


On Saturday, February 27 & Sunday, February 28, 2016, NYU hosted the Second conference on Multiple Equilibria and Financial Crises, following the first one held at the San Francisco Federal Reserve Bank on May 14 – May 15, 2015. The conference was generously funded by the C.V. Starr Center for Applied Economics. The program committee was formed by Jess Benhabib (New York University) and Roger Farmer (UCLA). The conference was attended by about 40-50 participants, including NYU faculty and students who engaged in stimulating discussions both during the presentations as well as during informal breaks.

The conference brought together researchers in macroeconomics and finance who are interested in the connections between multiple equilibria in macroeconomic models, financial crises and market volatility. The program can be found at

The conference featured 10 papers, seven on February 27 and three on February 28, Each presentation was followed by comments from a designated discussant and general discussion with the audience.

The first day started with a paper by Uhlig Harald and Veronica Guerrieri on “Macroeconomics in Financial Markets” discussed by Zhen Huo, and continued with papers by Costas Azariadis, Leo Kaas and Yi Wen on “Self-Fulfilling Credit Cycles,” discussed by Patrick Pintus, by Vincenzo Quadrini on “The Growth of Emerging Economies and Global Macroeconomic Stability,” discussed by Ali Shourideh, by Stephen Morris and Hyun Song Shin on “Illiquidity Component of Credit Risk,” discussed by Christophe Chamley, by Nicolae Garleanu and Stavros Panageas on “What to Expect when You (and Others) are Expecting: …,” discussed by Alberto Bisin, by Giovanni Nicolo and Francesco Bianchi on “Solving and Estimating LRE Models,” discussed by Frank Schorfheide, and by In-Koo Cho and Kenneth Kasa “Gresham’s Law of Model Averaging,” discussed by Jaroslav Borovicka.

On the second day papers were presented by George Evans, Seppo Honkapohja   and Kaushik Mitra on “Expectations, Stagnation, and Fiscal Policy,” discussed by Chryssi Giannitsarou , by Feng Dong , Jianjun Miao and Pengfei Wang “The Perils of Credit Booms,” discussed by Venky Venkateswaran and by Kenneth Burdett , Alberto Trejos and Randall Wright , on “A Simple Model of Monetary Exchange with Sticky and Dispersed Prices,” discussed by Benjamin Lester .

Costas Azariadis gave a dinner talk dinner on “Reflections on Multiple Equilibria.” A video of his presentation can be found at

Papers, presenter slides and discussant slides can be found at