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Alberto Martin

Research

Division

Current Position

Senior Adviser

Fields of interest

Macroeconomics and Monetary Economics,International Economics,Financial Economics

Email

Alberto.Martin@ecb.europa.eu

Other current responsibilities
2018-

Panel Member, Economic Policy

2017-

Associate Editor, Journal of International Economics

2013-

Member of the Editorial Board, Review of Economic Studies

Education
2000-2005

PhD in Economics, Columbia University, New York, United States

1996-1998

MA in Economics and Public Policy, Instituto DiTella, Buenos Aires, Argentina

1991-1996

Licenciado (BA) in Economics, Universidad Nacional de Cuyo, Mendoza, Argentina

Professional experience
2014-

Research Fellow, CEPR

2012-

Research Professor, Barcelona Graduate School of Economics (on leave)

2011-

Senior Researcher, CREI, Barcelona, Spain (on leave)

2013-2015

Research Fellow and Senior Economist, International Monetary Fund, Washington DC, United States

1999-2000

Economist, Antitrust Bureau, Argentine Ministry of Economics, Buenos Aires, Argentina

Awards
2014

European Research Council, Consolidator Grant

2009

Ramon y Cajal Grant

2009

Lamfalussy Fellowship, European Central Bank

2006

Juan de la Cierva Grant

2000

Fulbright Fellowship

Teaching experience
2005-2019

Various undergraduate and graduate macroeconomics courses, Universitat Pompeu Fabra, Barcelona, Spain

2016

Macroeconomics in the Global Economy, INSEAD, France

2014

Topics in International Economics, PhD course, University of Maryland, United States

2012

Topics in Macroeconomics, PhD course, Universita di Bologna, Italy

1 June 2011
WORKING PAPER SERIES - No. 1348
Details
Abstract
We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the model can account for: (i) a gradual and protracted expansionary phase followed by a sudden and sharp recession; (ii) the connection (or lack of connection!) between financial and real economic activity and; (iii) a fast and strong transmission of shocks across countries. We also use the model to explore the role of fiscal policy.
JEL Code
E32 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Business Fluctuations, Cycles
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
G01 : Financial Economics→General→Financial Crises
O40 : Economic Development, Technological Change, and Growth→Economic Growth and Aggregate Productivity→General
Network
ECB Lamfalussy Fellowship Programme
24 September 2018
WORKING PAPER SERIES - No. 2177
Details
Abstract
This paper identifies the various channels that give rise to a “sovereign-bank nexus” whereby the financial health of banks and sovereigns is intertwined. We find that banks and sovereigns are linked by three interacting channels: banks hold large amounts of sovereign debt; banks are protected by government guarantees; and the health of banks and governments affect and is affected by economic activity. Evidence suggests that all three channels are relevant. The paper concludes with a discussion of the policy implications of these findings.
JEL Code
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
F34 : International Economics→International Finance→International Lending and Debt Problems
G01 : Financial Economics→General→Financial Crises
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
Network
Discussion papers
22 February 2019
WORKING PAPER SERIES - No. 2245
Details
Abstract
How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble initially raises housing credit demand and crowds out credit to non-housing firms. If the bubble lasts, however, housing credit repayments raise banks’ net worth and expand credit supply, so that crowding-out eventually gives way to crowding-in. This is consistent with evidence from the recent Spanish housing bubble. Initially, credit growth of non-housing firms was lower at banks with higher bubble exposure, and firms relying on these banks exhibited lower credit and output growth. During the bubble’s last years, these effects reversed.
JEL Code
E32 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Business Fluctuations, Cycles
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
26 March 2019
WORKING PAPER SERIES - No. 2255
Details
Abstract
This paper explores a natural connection between fiscal multipliers and foreign holdings of public debt. Although fiscal expansions can raise domestic economic activity through various channels, they can also have crowding-out effects if the resources used to acquire public debt reduce domestic consumption and investment. These crowding-out effects are likely to be weaker when governments have access to foreign markets to place their debt, increasing the size of multipliers. We test this hypothesis on (i) post-war US data and (ii) data for a panel of 17 advanced economies from the 1980's to the present. To do so, we assemble a novel database of public debt holdings by domestic and foreign creditors for a large set of advanced economies. We combine this data with standard measures of fiscal policy shocks and show that, indeed, the size of fiscal multipliers is increasing in the share of public debt held by foreigners. In particular, the fiscal multiplier is smaller than one when the foreign share is low, such as in the U.S. in the 1950's and 1960's and Japan today, and larger than one when the foreign share is high, such as in the U.S. and Ireland today.
JEL Code
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
F32 : International Economics→International Finance→Current Account Adjustment, Short-Term Capital Movements
F34 : International Economics→International Finance→International Lending and Debt Problems
F36 : International Economics→International Finance→Financial Aspects of Economic Integration
F41 : International Economics→Macroeconomic Aspects of International Trade and Finance→Open Economy Macroeconomics
F62 : International Economics→Economic Impacts of Globalization→Macroeconomic Impacts
F65 : International Economics→Economic Impacts of Globalization→Finance
G15 : Financial Economics→General Financial Markets→International Financial Markets
H63 : Public Economics→National Budget, Deficit, and Debt→Debt, Debt Management, Sovereign Debt
16 April 2019
WORKING PAPER SERIES - No. 2266
Details
Abstract
We develop a new theory of information production during credit booms. In our model, entrepreneurs need credit to undertake investment projects, some of which enable them to divert resources towards private consumption. Lenders can protect themselves from such diversion in two ways: collateralization and costly screening, which generates durable information about projects. In equilibrium, the collateralization-screening mix depends on the value of aggregate collateral. High collateral values raise investment and economic activity, but they also raise collateralization at the expense of screening. This has important dynamic implications. During credit booms driven by high collateral values (e.g. real estate booms), the economy accumulates physical capital but depletes information about investment projects. As a result, collateral-driven booms end in deep crises and slow recoveries: when booms end, investment is constrained both by the lack of collateral and by the lack of information on existing investment projects, which takes time to rebuild. We provide new empirical evidence using US firm-level data in support of the model's main mechanism.
JEL Code
E32 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Business Fluctuations, Cycles
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
G01 : Financial Economics→General→Financial Crises
D80 : Microeconomics→Information, Knowledge, and Uncertainty→General
19 February 2021
WORKING PAPER SERIES - No. 2527
Details
Abstract
The Global Financial Crisis fostered the design and adoption of macroprudential policies throughout the world. This raises important questions for monetary policy. What, if any, is the relationship between monetary and macroprudential policies? In particular, how does the effectiveness of macroprudential policies (or lack thereof) influence the conduct of monetary policy? This discussion paper builds on the insights of recent theoretical and empirical research to address these questions.
JEL Code
E3 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
G01 : Financial Economics→General→Financial Crises
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
Network
Research Task Force (RTF)
2020
The Review of Economic Studies
Monetary Policy for a Bubbly World
  • Asriyan, V., Fornaro, L., Martin, A. and Ventura, J.
2020
Economic policy
Comments on ‘The Productivity Puzzle and Misallocation: an Italian Perspective’
  • Martin, A.
2018
Annual Review of Economics
The Macroeconomics of Rational Bubbles: a User's Guide
  • Martin, A., and Ventura, J.
2018
Journal of Monetary Economics
Banks, Government Bonds, and Default: What do the Data Say?
  • Gennaioli, N., Martin, A., and Rossi, S.
2016
Journal of Economic Dynamics and Control
Comments on ‘Reverse Speculative Attacks’
  • Martin, A.
2016
Journal of the European Economic Association
Managing Credit Bubbles
  • Martin, A. and Ventura, J.
2015
Journal of Monetary Economics
The International Transmission of Credit Bubbles: Theory and Policy
  • Martin, A. and Ventura, J.
2014
Journal of Finance
Sovereign Default, Domestic Banks and Financial Institutions
  • Gennaioli, N., Martin, A., and Rossi, S.
2014
Journal of Monetary Economics
Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-out Effects
  • Broner, F., Erce, A., Martin, A. and Ventura, J.
2013
Journal of International Economics
International Capital Flows and Credit Market Imperfections: A Tale of Two Frictions
  • Martin, A. and Taddei, F.
2012
American Economic Review
Economic Growth with Bubbles
  • Martin, A. and Ventura, J.
2011
IMF Economic Review
Theoretical Notes on Bubbles and the Current Crisis’
  • Martin, A. and Ventura, J.
2011
American Economic Review Papers and Proceedings
Understanding Bubbly Episodes
  • Carvalho, V., Martin, A. and Ventura, J.
2010
American Economic Review
Sovereign Risk and Secondary Markets
  • Broner, F., Martin, A. and Ventura, J.
2009
Journal of Economic Theory
A Model of Collateral, Investment, and Adverse Selection
  • Martin, A.
2008
Journal of the European Economic Association: Papers and Proceedings
Enforcement Problems and Secondary Markets
  • Broner, F., Martin, A. and Ventura, J.
2008
Journal of International Economics
On the Role of Retaliation in Trade Agreements
  • Martin, A. and Vergote, W.
2007
Economic Theory
On Rothschild-Stiglitz as Competitive Pooling
  • Martin, A.
2020
The Monetary and Fiscal History of Latin America
  • Martin, A.
2015
Global Liquidity, Spillovers to Emerging Markets, and Policy Responses
  • Martin, A. and Ventura, J.
2015
R. Caballero and K. Scmidt-Hebbel (eds.), Economic Policy in Emerging Economies, Central Bank of Chile
  • Martin, A. and Ventura, J.