Anil K Kashyap

Edward Eagle Brown Professor of Economics and Finance

 Contact Information

University of Chicago
Booth School of Business
5807 South Woodlawn Avenue
Chicago, IL 60637
voice (773) 702-7260
fax (773) 834-2081
email: anil.kashyap@ChicagoGSB.edu
Assistant : Janice Luce, (773) 702-1235

CV

Short Biographical Statement

Recent Newspaper Articles, Books and Papers

Note: All articles are the sole copyright of the respective publishers.  Materials are provided for educational use only.

"A New Metric for Banking Integration in Europe" with Reint Gropp (European Business School and Centre for European Economic Research), November 2008.

"Will the TARP Succeed? Lessons from Japan" (with Takeo Hoshi), National Bureau of Economic Research, Working Paper, October 2008.

"What Next?" (with Douglas Diamond and Raghuram G. Rajan) October 8, 2008, in "Rescuing our Jobs and Savings: What G7/8 Leaders Can Do To Solve the Global Credit Crisis"  a VoxEU.org publication. Link to VoxEU: to   http://www.voxeu.org/reports/crisis/global_credit_crisis.pdf.

"Fixing the Paulson Plan" (with Douglas Diamond, Steve Kaplan, Raghuram G. Rajan and Richard Thaler), Wall Street Journal, Friday-Sunday September 26-28, 2008.

The $700 Billion Question" (with Jeremy C. Stein), New York Times, September 23, 2008.

"Diamond and Kashyap on the Recent Financial Upheavals" article in Steven D. Levitt's Opinion column, New York Times, September 18, 2008.

"A Blueprint for Reforming Japan" (with Takeo Hoshi), Asian Wall Street Journal, September 12, 2008.

"Rethinking Capital Regulation" (Final Version 9/08) with Raghuram G. Rajan (Chicago GSB) and Jeremy C. Stein (Harvard).

"Ask the oil producers to rescue Wall Street" (with Hyun Song Shin), Financial Times, March 20, 2008.

"Leveraged Losses: Lessons from the Mortgage Market Meltdown (Final Report)" with David Greenlaw (Morgan Stanley), Jan Hatzius (Goldman Sachs), Anil Kashyap (Chicago GSB) and Hyun Shin (Princeton), US Monetary Policy Forum Report No. 2, 2008. Click here to read original draft of report.

"Zombie Lending and Depressed Restructuring in Japan" (with Ricardo J. Caballero and Takeo Hoshi), January 2008. American Economic Review, forthcoming.

"Investment Spikes: New Facts and a General Equilibrium Exploration," (with François Gourio), Journal of Monetary Economics, 2007.

Previous Newspaper Articles

"Inflation trends and the role of central bankers," (with Stephen Cecchetti), Financial Times, March 8, 2007.

"MoneyMess," Asian Wall Street Journal, March 1, 2007, page A13.

"The Bank of Japan must explain its inflation toolbox," Financial Times, March 12, 2006.

"Now Japan can test the reality of Koizumi's appetite for surgery," Financial Times, September 13, 2005.

"Interview with The Oriental Economist" The Oriental Economist, February 2005.

"Chicago professor says FSA should stop fibbing," interview with The Daily Yomiuri, September 27, 2004.

"Local standards must be flexible for new zoning code to work," Chicago Sun-Times, September 10, 2004.

"Size is not the answer for Japan's banks," Financial Times, July 19, 2004.

WSJ Letter to the Editor "Japan, Worse Than You Think," commenting on editorial titled "Japan, Crisis and Nationalism," published on November 26, 2002.

WSJ oped on Japan's Indian Summer (July 18, 2002).

"Financial Times Personal View on the Japanese Financial Crisis" (December 2001).

"WSJ Comment on the Bank of Japan" (November 2001).

"Japan’s Big Bang Starts to Whimper," The Asian Wall Street Journal (February 21, 2000)

"Bigger Banks Aren’t Better for Japan," The Asian Wall Street Journal (August 31, 1999)

Research

Most of my research has been on four (overlapping) topics:

 Monetary transmission mechanism

  Japanese financial system

 Banking

 Capital market imperfections

Current Affiliations

University of Chicago, Graduate School of Business, Edward Eagle Brown Professor of Economics and Finance.

Research Associate, National Bureau of Economic Research, and Coordinator of the NBER working group on the Japanese economy.

Consultant, Research Department, Federal Reserve Bank of Chicago.

Member, University of Chicago Center for East Asian Studies.

Board of Associate Editors, Journal of Japanese and International Economies.

Advisory Board, Journal of Risk Finance.

Bellagio Group Member.

Instructor in the Advanced Workshop for Central Banks, Northwestern University.

Co-Founder U.S. Monetary Policy Forum.

Board of Directors, Einaudi Institute of Economics and Finance.

Papers on the Monetary Transmission Mechanism

"Stability First: Reflections Inspired by Otmar Issing's Success as the ECB's Chief Economist," (with Vítor Gaspar), prepared for the ECB Colloquium held in honor of Otmar Issing, revised April 2006.

"Monetary Transmission in the Euro Area: does the interest rate channel explain all?", (with Ignazio Angeloni, Benoît Mojon, and Daniele Terlizzese), a revised version of ECB working paper 114 (January 2002). To appear in condensed form as chapter 24 in Ignazio Angeloni, Anil K Kashyap and Benoît Mojon, eds., Monetary Policy in the Euro-Area, Cambridge University Press, 2003.

"The Output Composition Puzzle: A difference in the monetary transmission mechanism in the Euro Area and U.S.," (with Ignazio Angeloni, Benoît Mojon, Daniele Terlizzese), Journal of Money, Credit and Banking.

"Why Don't Prices Rise During Periods of Peak Demand?  Evidence From Scanner Data" (with Judith Chevalier and Peter Rossi), American Economic Review, 2003, 93(1), pp. 15-37.

"How Interest Sensitive is Investement? Very (when the data are well measured)" (with Luigi Guiso, Fabio Panetta, and Daniele Terlizzese), July 2002.

"Monetary Transmission in the Euro Area: does the interest rate channel explain all?," (with Ignazio Angeloni, Benoît Mojon, and Daniele Terlizzese), a revised version of ECB working paper 114 (January 2002).

"Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking," (with Raghuram Rajan and Jeremy Stein), Journal of Finance, 2002, LVII(1), pp. 33-74. (2002 Brattle Prize Distinguished Paper)

"What Do A Million Observations on Banks Say About the Transmission of Monetary Policy?," (with Jeremy Stein), American Economic Review, 90(3), pp. 407-28.

"Will A Common European Monetary Policy Have Asymmetric Effects?," (with Luigi Guiso, Fabio Panetta, and Daniele Terlizzese), Federal Reserve Bank of Chicago Economic Perspectives, Vol. 23, Fourth Quarter, pp. 56-75.

"The Role of Banks in Monetary Policy: A Survey With Implications for the European Monetary Union," Federal Reserve Bank of Chicago Economic Perspectives, September/October 1997, pp. 2-18.

"The Impact of Monetary Policy on Bank Balance Sheets," (with Jeremy Stein), Carnegie-Rochester Conference Series on Public Policy, 1995, vol. 42, pp. 151-95.

"Credit Conditions and the Cyclical Behavior of Inventories," (with Jeremy Stein and Owen Lamont), Quarterly Journal of Economics, 1994, vol. 109, pp. 565-92. View using "Jstor"

"Monetary Policy and Bank Lending", in Monetary Policy," (with Jeremy Stein), edited by N. Gregory Mankiw, University of Chicago Press, 1994, pp. 221-56.

"Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance," (with Jeremy Stein and David Wilcox), American Economic Review, 1993, vol. 83(1), pp. 78-98. View using "Jstor"

Papers on the Japanese Financial System

"Zombie Lending and Depressed Restructuring in Japan" (with Ricardo J. Caballero and Takeo Hoshi), January 2008. American Economic Review, forthcoming.

"Solutions to Japan’s Banking Problems: What might work and what definitely will fail," (with Takeo Hoshi), in "Reviving Japan's Economy: Problems and Prescriptions." edited by Takatoshi Ito, Hugh Patrick and David Weinstein.

Structural Impediments to Growth in Japan, (jointly edited with Magnus Blomström, Jennifer Corbett and Fumio Hayashi) for the NBER, University of Chicago Press, 2003.

"Japan’s Economic and Financial Crisis: An Overview" (with Takeo Hoshi), The Journal of Economic Perspectives, Winter 2004.

"Resona Rescue Takes the Biscuit," Look Japan, September 2003.

"Sorting Out Japan's Financial Crisis," Federal Reserve Bank of Chicago Economic Perspectives, 4th Quarter 2002, pp. 42-55.

Corporate Financing and Governance in Japan: The Road to the Future, (with Takeo Hoshi), Massachusetts Institute of Technology Press , September 2001.

"The Japanese Banking Crisis: Where Did It Come From and How Will It End?," (with Takeo Hoshi), NBER Macroeconomics Annual 1999.

"The Choice between Public Debt and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan" (with Takeo Hoshi and David Scharfstein), NBER Working Paper 4421.

"Lessons from the Japanese Main Bank System for Financial System Reform in Poland," in The Japanese Main Bank System: Its Relevancy for Developing and Transforming Economies, (with Takeo Hoshi and Gary Loveman), edited by Masahiko Aoki and Hugh Patrick, Oxford University Press, 1994, pp. 592-633.

"Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups," (with Takeo Hoshi and David Scharfstein), Quarterly Journal of Economics, 1991, vol. 106, pp 33-60. View using "Jstor" (Reprinted in Empirical Corporate Finance, edited by Michael J. Brennan for Edward Elgar Publishing Limited, UK, 2000).

"The Role of Banks in Reducing the Costs of Financial Distress in Japan," (with Takeo Hoshi and David Scharfstein), Journal of Financial Economics, 1990, vol. 27, pp. 67-88. (Journal of Financial Economics All Star Paper)

"Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships," (with Takeo Hoshi and David Scharfstein), in Asymmetric Information, Investment and Capital Markets, edited by R. Glenn Hubbard, University of Chicago Press, 1990, pp. 105-26.

"Evidence on q and Investment for Japanese Firms,"(with Takeo Hoshi), Journal of Japanese and International Economies, 1990, vol. 4, pp. 371-400.

Papers on Banking

"A New Metric for Banking Integration in Europe" with Reint Gropp (European Business School and Centre for European Economic Research), November 2008.

"Leveraged Losses: Lessons from the Mortgage Market Meltdown (Final Report)" with David Greenlaw (Morgan Stanley), Jan Hatzius (Goldman Sachs), Anil Kashyap (Chicago GSB) and Hyun Shin (Princeton), US Monetary Policy Forum Report No. 2, 2008. Click here to read original draft of report.

"The contradiction in China’s gradualist banking reforms," (with Wendy Dobson), prepared for the Brookings Panel on Economic Activity and as part of the Initiative on Global Financial Markets working paper series, 2007.

"Cyclical Implications of the Basel-II Capital Standard" (with Jeremy C. Stein), Federal Reserve Bank of Chicago Economic Perspectives, First Quarter 2004, pp. 18-31. Full working paper version

"Monetary Transmission in the Euro Area: does the interest rate channel explain all?," (with Ignazio Angeloni, Benoît Mojon, and Daniele Terlizzese), a revised version of ECB working paper 114, January 2002.

"Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking," (with Raghuram Rajan and Jeremy Stein), Journal of Finance, February 2002.

Corporate Financing and Governance in Japan: The Road to the Future, (with Takeo Hoshi), Massachusetts Institute of Technology Press , September 2001.

"The Japanese Banking Crisis: Where Did It Come From and How Will It End?," (with Takeo Hoshi), NBER Macroeconomics Annual 1999.

"What Do A Million Observations on Banks Say About the Transmission of Monetary Policy?," (with Jeremy Stein), American Economic Review, 90(3), pp. 407-28.

"The Role of Banks in Monetary Policy: A Survey With Implications for the European Monetary Union," (with Jeremy Stein), Federal Reserve Bank of Chicago Economic Perspectives, September/October 1997, pp. 2-18.

"The Impact of Monetary Policy on Bank Balance Sheets," Carnegie-Rochester Conference Series on Public Policy, (with Jeremy Stein), 1995, vol. 42, pp. 151-95.

"The Transformation of the U.S. Commercial Banking Industry: What A Long Strange Trip It's Been," (with Allen Berger and Joseph Scalise), Brookings Papers on Economic Activity 1995:2, pp. 55-218.

"The Choice between Public Debt and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan," (with Takeo Hoshi and David Scharfstein), NBER Working Paper 4421.

"Lessons from the Japanese Main Bank System for Financial System Reform in Poland," (with Takeo Hoshi and Gary Loveman), in The Japanese Main Bank System: Its Relevancy for Developing and Transforming Economies, edited by Masahiko Aoki and Hugh Patrick, Oxford University Press, 1994, pp. 592-633.

"Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups," (with Takeo Hoshi and David Scharfstein), Quarterly Journal of Economics, 1991, vol. 106, pp 33-60. View using "Jstor" (Reprinted in Empirical Corporate Finance, edited by Michael J. Brennan for Edward Elgar Publishing Limited, UK, 2000).

"The Role of Banks in Reducing the Costs of Financial Distress in Japan," (with Takeo Hoshi and David Scharfstein), Journal of Financial Economics, 1990, vol. 27, pp. 67-88. (Journal of Financial Economics All Star Paper)

"Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships," (with Takeo Hoshi and David Scharfstein), in Asymmetric Information, Investment and Capital Markets, edited by R. Glenn Hubbard, University of Chicago Press, 1990, pp. 105-26.

Papers on Credit Rationing

"What Do A Million Observations on Banks Say About the Transmission of Monetary Policy?," (with Jeremy Stein), American Economic Review, 90(3), pp. 407-428.

"The Role of Banks in Monetary Policy: A Survey With Implications for the European Monetary Union," (with Jeremy Stein), Federal Reserve Bank of Chicago Economic Perspectives, September/October 1997, pp. 2-18.

"The Impact of Monetary Policy on Bank Balance Sheets," (with Jeremy Stein), Carnegie-Rochester Conference Series on Public Policy, 1995, vol. 42, pp. 151-95.

"Internal Finance and Firm Investment," Journal of Money, Credit and Banking, (with R. Glenn Hubbard and Toni M. Whited), 1995, vol. 27(3), pp. 681-701. View using "Jstor"

"Internal Net Worth and the Investment Process: An Application to U.S. Agriculture," (with R. Glenn Hubbard), Journal of Political Economy, 1992, vol. 100, pp. 506-34. View using "Jstor"

"Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups," (with Takeo Hoshi and David Scharfstein), Quarterly Journal of Economics, 1991, vol. 106, pp 33-60. View using "Jstor" (Reprinted in Empirical Corporate Finance, edited by Michael J. Brennan for Edward Elgar Publishing Limited, UK, 2000).

"The Role of Banks in Reducing the Costs of Financial Distress in Japan," (with Takeo Hoshi and David Scharfstein), Journal of Financial Economics, 1990, vol. 27, pp. 67-88. (Journal of Financial Economics All Star Paper)

"Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships," (with Takeo Hoshi and David Scharfstein), in Asymmetric Information, Investment and Capital Markets, edited by R. Glenn Hubbard, University of Chicago Press, 1990, pp. 105-26.

"Interest Rate Spreads, Credit Constraints, and Investment Fluctuations: An Empirical Investigation," (with Mark Gertler and R. Glenn Hubbard), in Financial Markets and Financial Crises, edited by R. Glenn Hubbard, University of Chicago Press, 1991, pp. 11-31.

Other Refereed Publications

"Investment Spikes: New Facts and a General Equilibrium Exploration," (with François Gourio), Journal of Monetary Economics, 2007.

"Interactions Between The Seasonal and Business Cycles in Production and Inventories," (with Stephen Cecchetti and David Wilcox), American Economic Review, 1997, 87(5), pp. 884-92. View using "Jstor"

"International Cycles," (with Stephen Cecchetti), European Economic Review, 1996, vol. 40(2), pp. 331-60.

"Sticky Prices: New Evidence from Retail Catalogs," Quarterly Journal of Economics, 1995, vol. 110, pp. 245-74. View using "Jstor"

"Production Smoothing at the General Motors Corporation During the 1920s and 1930s," (with David Wilcox), American Economic Review, 1993 vol. 83(3) pp. 383-401. View using "Jstor"

"Further Results on Estimating Linear Regression Models with Partial Prior Information," (with P.A.V.B. Swamy, J.S. Mehta and R.D. Porter), Economic Modelling, 1988, vol. 5, pp. 49-57.

"Autocorrelation and the Sensitivity of RESET," (with Richard Porter), Economics Letters, 1984, vol. 14, pp. 229-233.

Current Teaching

University of Chicago Graduate School of Business, Business 35200, Corporation Finance; Selected problem areas in financial management, including capital expenditure and capital structure policies; dividend policies, mergers, and consolidations; capital markets; and short-term asset management.

University of Chicago Graduate School of Business, Business 33402: Understanding Central Banks. An advanced macroeconomics course that will analyze the role and performance of Central Banks (particularly the Federal Reserve, the Bank of Japan, and the European Central Bank) and other international agencies such as the International Monetary Fund in the world economy. Covers two broad themes: financial crises and the art of making (and interpreting) monetary policy, with a heavy emphasis on current events.

Education

Massachusetts Institute of Technology, Ph.D in Economics, 1989

University of California at Davis, B.A., 1982, Graduation with Highest Honors.

Grants, Honors, and Fellowships

Panelist, Brookings Panel on Economic Activity 1995, 2006.

Co-editor, Journal of Political Economy, July 2003 - December 2005.

Visiting Scholar, Division of Monetary Affairs, Board of Governors of the Federal Reserve System, 1994, 2001 and 2005.

Board of Associate Editors, Journal of Financial Intermediation, January 1998 - June 2005.

Consultant, External Reviewer, Research Department, Federal Reserve Bank of New York, 2003.

Advisory Council member, Japan External Trade Organization, Project on "Accessing the Japanese Market," August 1995 - May 2003. JETRO Award May 2003 for outstanding contribution to the organization in the previous year.

Consultant, Research Department of the European Central Bank, and Advisor to the 12 National Central Banks of the Eurosystem Monetary Transmission Network, 1999 - 2003.

"Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking," (with Raghuram Rajan adn Jeremy Stein) selected for the 2002 Brattle Prize Distinguished Paper.

Corporate Financing and Governance in Japan: The Road to the Future (with Takeo Hoshi), MIT Press, selected for the 45th Nikkei Prize for Excellent Books in Economic Science.

Bank of England, Senior Houblon-Norman Fellow Fall 2001

National Science Foundation Grants in Economics 1998-2002; previous support from 1995-1997 (with Jeremy Stein); 1994 (with Stephen Cecchetti); 1992-1993 (with Jeremy Stein).

Member, Humanities, Social Sciences and Business Studies Panel of the Research Grants Council of Hong Kong, 1997.

Visiting Scholar, Division of International Finance, Board of Governors of the Federal Reserve System, 1997; Division of Monetary Affairs, 1994.

Sloan Research Fellowship 1995-1997.

Graduate School of Business, James S. Kemper Foundation Scholar, 1995-1996.

Co-editor, Journal of Business, July 1999 - July 2001.

Consultant, U.S. Central Intelligence Agency, 1995 and 1999.

Visiting Scholar, Financial Markets Group, London School of Economics, 1995 and 1999.

Faculty Research Fellow, National Bureau of Economic Research, 1992-1996.

Graduate School of Business, IBM Corporation Scholar, 1992-1993.

MIT Department of Economics Fellowship, 1985 and 1986.

University of California at Davis, 1982 Wall Street Journal Award (Awarded to top graduating student in Economics) and Phi Beta Kappa (1981).