José Luis Peydró
Universitat Pompeu Fabra
Economics and Business Department
carrer Ramon Trias Fargas, 25
08005 Barcelona
Twitter: @persistdebt
Support staff: Mariona Novoa, mariona.novoa@upf.edu
- Banking, Financial Crises, Monetary Policy, International Finance, Macroprudential Policy

Working Papers
Earlier title: ‘Dressing up for the regulator: Evidence from the largest-ever supervisory review’
Watch a presentation at the Asociación Española de Finanzas (AEFIN) ‘25th Foro de Finanzas’ (2017) YOUTUBE
Submitted
Outreach: BIS Committee on the Global Financial System report no. 63, Unconventional monetary policy tools: A cross-country analysis (2019)
Submitted
Outreach: Cited in the European Systemic Risk Board‘s Advisory Scientific Committee Report no. 10 The global dimensions of macroprudential policy (2020)
Outreach: Cited in the Bank of Spain’s Financial Stability Review no. 38: 27-51 (2020)
Outreach: Cited on VoxEU (2017)
Previously circulated as ‘Negative Monetary Policy Rates and Portfolio Rebalancing: Evidence from Credit Register Data’.
Outreach: CentralBanking.com (2020) · Keynote speeches by Philip R. Lane (ECB Executive Board) Berlin and New York (2020) & Helsinki and London (2019) · ECB Economic Bulletin no. 3 (2020) · IMF Global Financial Stability Report: Markets in the Time of COVID-19 (2020) · IMF World Economic Outlook report (2020) · Danmarks Nationalbank, Analysis: Positive pass-through from negative rates no. 5 (2020) · CEPR book The Bank Business Model in the Post-Covid-19 World (2020) · VoxEU posts August and April 2020 · 2019 · Speech by Boštjan Vasle Governor of the Bank of Slovenia (2019)
Previously circulated as ‘Macroprudential Policy and Household Leverage: Evidence from Administrative Household-Level Data’
Outreach: Financial Stability Notes no. 12, Central Bank of Ireland (2019)
Previously circulated as ‘US Monetary Policy and Exchange Rate: Micro Evidence on the Brazilian Credit Channel’
Outreach: Featured in Moody’s Analytics regulatory news (2019)
Summaries: VoxEU (most read: all time) · Ökonomenstimme · Nada es gratis
Outreach: LSE Business Review · cited on VoxEU posts 2020 August and July · CaixaBank Research IM05 monthly report (2019)
Outreach: World Bank study A Decade after the Global Recession (ch. 5, 2019) · Israel Economic Review no. 17(1), Bank of Israel (2019)
R&R Review of Economic Studies
See Nada es Gratis
[Previously circulated as: ‘Credit Demand Forever?’ On the Strengths of Bank and Firm Balance-Sheet Channels in Good and Crisis Times]
Outreach: Cited in VoxEU (2020) · Central Bank of Ireland Financial Stability Notes no. 2 (2020)
Publications
NOTE : In the case of publications that are not open-access, downloading, copying or printing for, or on behalf of, any for-profit commercial firm or other commercial purpose should not be done without the explicit permission of the corresponding publisher.
Journal of Money, Credit and Banking, 2020, 52 (S1), 197-231. DOI.
Journal of Financial Economics, accepted.
Journal of International Economics, accepted.
Previously circulated as ‘International financial integration, crises and monetary policy: Evidence from the Euro Area interbank crises’
Review of Financial Studies, 2020. DOI (Open Access)
Economic Policy, 35 (102), 2020, 213-267. DOI.
Journal of Monetary Economics, 115, 2020, 162-179. DOI (Open Access)
Previously circulated as ‘Local Versus Aggregate Lending Channels: The Effects of Securitization on Corporate Credit Supply in Spain’
Financial Management, 2020, 1-26. DOI.
Journal of Development Economics, 139, 2019, 185-202. DOI (Open Access)
Journal of Finance, 74 (1), 2019, 55-90. DOI.
Economic Policy, 33 (96), 2018, 531-586. DOI.
Within the Highly Cited Articles in Economic Policy
Journal of International Economics, 108 (S1), 2017, 15-22. DOI (Open Access)
Macroprudential Policy, Countercyclical Bank Capital Buffers and Credit Supply: Evidence from the Spanish Dynamic Provisioning Experiments (with Jiménez, G., S. Ongena and J. Saurina)
Journal of Political Economy, 125 (6), 2017, 2126-2177. DOI.
‘In the Short Run Blasé, in the Long Run Risqué’. On the Effects of Monetary Policy on Bank Credit Risk-Taking in the Short versus Long Run (with S. Ongena and G. Jimenez)
Schmalenbach Business Review, 18 (3), 2017, 181-226. DOI.
Double Bank Runs and Liquidity Risk Management (with F. Ippolito, A. Polo, and E. Sette)
Journal of Financial Economics, 122(1), 2016, 135-154. DOI.
Securities Trading by Banks and Credit Supply: Micro-Evidence from the Crisis (with P. Abbassi, R. Iyer and F. Rodríguez-Tous)
Journal of Financial Economics, 121 (3), 2016, 569-594. DOI.
Macroprudential Policy and Credit Supply
Swiss Journal of Economics and Statistics, 4(2), 2016, 305-318. DOI (Open Access)
Review of Economic Dynamics, 18(4), 2015, 979-1002. DOI.
Isaac Kerstenetzky Award 2010 Honourable Mention
IMF Economic Review 63 (4), 2015, 698-750. DOI.
Open Economies Review, 26 (3), 2015, 407-445. DOI.
Review of Finance, 19(1), 2015, 95-144. DOI.
Previously circulated as ‘Monetary Policy and Subprime Lending: A Tall Tale of Low Federal Funds Rates, Hazardous Loans, and Reduced Loan Spreads’
Econometrica, 82 (2), 2014, 463-505. DOI.
SERIEs, 5 (2), 2014, 223-243. DOI (Open Access)
Winner of the 2nd edition of the SERIEs award
Review of Financial Studies, 27 (1), 2014, 347-372. DOI.
Journal of Finance, 68 (3), 2013, 1179-1228. DOI.
Previously circulated as ‘Financial Integration and Business Cycle Synchronization’
Economic Policy, 28 (75), 2013, 459-512. DOI.
International Journal of Central Banking, March issue, 2013, 121-169.
American Economic Review, 102 (5), 2012, 2301-2326. DOI.
Review of Financial Studies, 24 (6), 2011, 2121-2165. DOI.
Review of Financial Studies, 24 (4), 2011, 1337-1377. DOI.
Previously circulated as ‘How Does a Shock Propagate? A Model of Contagion in the Interbank Market Due to Financial Linkages’
Journal of International Economics, 81 (1), 2010, 75–88. DOI.
Books
Systemic Risk, Crises, and Macroprudential Regulation (with X. Freixas and L. Laeven), Cambridge (MA): MIT Press, 2015.
MIT Press book website [+]
Outreach: VoxEU · Nada es Gratis · Intervention by Stijn Claessens (Senior Adviser, Board of Governors of the Federal Reserve System) (2016) · Citations in: Central Bank of Colombia’s Borradores de Economía no. 1014 (2017) · BIS Papers Macroprudential policy frameworks, implementation and relationships with other policies, vol. 94 (2017) · Monetary Policy & the Economy, Austrian Central Bank, issue Q2 (2018) · ifo Institut DICE Report vol. 15(1), 2017 · VoxEU 2019 / 2019 and 2016
The recent financial crisis has shattered all standard approaches to banking regulation. Regulators now recognize that banking regulation cannot be simply based on individual financial institutions’ risks. Instead, systemic risk and macroprudential regulation have come to the forefront of the new regulatory paradigm. Yet our knowledge of these two core aspects of regulation is still limited and fragmented. This book offers a framework for understanding the reasons for the regulatory shift from a microprudential to a macroprudential approach to financial regulation. It defines systemic risk and macroprudential policy, cutting through the generalized confusion as to their meaning; contrasts macroprudential to microprudential approaches; discusses the interaction of macroprudential policy with macroeconomic policy (monetary policy in particular); and describes macroprudential tools and experiences with macroprudential regulation around the world.
The book also considers the remaining challenges for establishing effective macroprudential policy and broader issues in regulatory reform. These include the optimal size and structure of the financial system, the multiplicity of regulatory bodies in the United States, the supervision of cross-border financial institutions, and the need for international cooperation on macroprudential policies.
BOOK CHAPTERS
El papel de la banca pública y privada en la crisis del COVID19 in Á. de la Fuente Moreno, T. Roldán, J.F. Jimeno (cords.), La economía española en tiempos de pandemia: Una primera aproximación, Barcelona: Editorial Debate (e-book), 2020.
Ed. Debate website [+]
Securities Trading and Lending in Banks (with A. Polo and A. Sette) in Mayer C., Micossi S., Onado M., Pagano M. and Polo, A. (eds.), Finance and Investment: The European Case, Oxford: Oxford University Press, 2018.
OUP book website [+] · Book chapter (Pdf) [+]
Outreach: VoxEU · Watch video presentations by Polo et al. · Book cited in the European Investment Bank Report 2018/2019 · Book cited in Wikipedias’s entry ‘Capital Markets Union’
Chapter abstract: Since the beginning of the financial crisis, academics and regulators on both sides of the Atlantic have started to debate the implications of securities trading by banks. New regulation limits security trading, fearing that this could crowd out lending to the real economy or could facilitate risk-shifting by financial institutions. On the other hand, banks may use security trading for hedging purposes or, particularly during a crisis, to access public liquidity. Only very recently have researchers begun to have access to micro data at the security level on banks’ trading activities, and they are starting to bring robust evidence on these issues. This chapter reviews the potential costs and benefits of combining traditional intermediation activity with security trading and discusses the recent empirical evidence.
Keywords: Securities trading, bank trading activities, bank lending, Bank of Italy, ECB
The Credit Channel of Monetary Policy in the Euro Area (with A. Maddaloni), in Badinger, H. and Nitsch, V. (eds.), Routledge Handbook of the Economics of European Integration, Routledge International Handbooks Series, Oxford & New York: Routledge, 132-142, 2015.
Routledge book website [+]
Chapter abstract: The credit provided by banks is key to fund investment and consumption. In the euro area this is particularly true since bank loans represent the large majority of the credit going to the non-financial sector (corporates and households). How credit provision responds to monetary policy impulses is therefore a crucial question which policy makers are generally confronted with, in particular when a financial crisis strikes.
Five Years of Crisis (resolution) – Some lessons (with T. Beck) in Baldwin, R. and Giavazzi, F. (eds.) The Eurozone Crisis: A Consensus View of the Causes and a Few Possible Solutions. London: CEPR Press, 63-71, 2015.
CEPR eBook website [+]
Read the chapter on VoxEU
Interbank Markets as a Source of Contagion (with R. Iyer) in Kolb, R. (ed.), Financial Contagion: The Viral Threat to the Wealth of Nations, Kolb Series in Finance: Essential Perspectives, NJ: John Wiley & Sons, Inc., 321-324, 2011.
Wiley book website [+]
Loose Monetary Policy and Excessive Credit and Liquidity Risk-taking by Banks (with S. Ongena) in Beck, T. (ed.), The Future of Banking, London: CEPR Press, 21-28, 2011.
CEPR eBook website [+]
Read a summary on VoxEU
Systemic Risk in Banking: an Update (with O. de Bandt and P. Hartmann) in Berger A., Molyneux P. and Wilson J. (eds.), The Oxford Handbook of Banking, Oxford Handbooks in Finance, Oxford: Oxford University Press, 633-672, 2009.
OUP book website [+]
Citations in the Distinguished Lecture in Economics and Public Policy by Jean-Claude Trichet (2009)· VoxEU 2014 and 2012 · ECB report on the first two years of the Macro-prudential Research Network (2012) · ECB Financial Stability Review (June 2011) · Speech by J.M. González-Páramo, Member of the Executive Board of the ECB (2011) · Conference speech by Vítor Constâncio, Vice-President of the ECB (2014)
Chapter abstract: This article provides a comprehensive analysis of systemic risk, as the primary ingredient to understand financial crises and as a main rationale for banking regulation, prudential supervision, and crisis management. The second section provides the framework within which the theoretical and empirical literature is interpreted in the subsequent parts and briefly discusses its relevance for economic policy. The third section gives an overview of theoretical models explaining systemic risks in banking markets (including payment systems). The fourth section surveys econometric tests and some other quantitative empirical assessments of the various facets of systemic risk, focusing particularly on bank contagion but also on joint crises — for example, as caused by systematic shocks or the unravelling of imbalances that have built up over time. The fifth section concludes.
The Impact of Short-Term Interest Rates on Risk-Taking: Hard Evidence (with V. Ioannidou and S. Ongena) in Reinhart C. and Felton A. (eds.), The First Global Financial Crisis of the 21st Century, London: CEPR Press, 34-37, 2008.
Short Bio and Picture
Peydró is ICREA Professor at UPF and CREI, Professor at Barcelona GSE, CEPR Research Fellow, Bundesbank Research Professor, advisor of Bank of Spain, consultant in several central banks, and independent board member at Institut Català de les Finances (ICF). He was member of the advisory scientific committee at the European Systemic Risk Board and held visiting positions at Banque de France, Becker Friedman Institute at Chicago University, MIT-Sloan, IMF and World Bank. Peydró is recipient of a European Research Council Consolidator grant (@persistdebt), a European Central Bank Wim Duisenberg Fellowship, a senior Houblon-Norman Fellowship (Bank of England), three MINECO grants and a Fundación BBVA grant. Peydró teaches at Barcelona GSE and Imperial College. As of December 2020, Peydró is number 4 in the world in research impact for economists who finished their PhD in 2005 and number 1 over the last 10 years for Spanish economists (in Spain or abroad) based on Research Papers in Economics (RePEc) data.
Peydró specializes in Finance and Macroeconomics, mainly on systemic risk, financial crises, endogenous risk, central bank policies, monetary and prudential policy, financial globalization, financial contagion, financial innovation, macroeconomics and credit markets, banking, fintech, capital and liquidity. He is also working on the effects of financial distress on households’ welfare. His research has been published in the top-5 journals in economics: Econometrica (lead article), American Economic Review and Journal of Political Economy, and in the top-3 journals on finance (Review of Financial Studies, Journal of Finance, and Journal of Financial Economics). He has also co-written the book Systemic Risk, Crises and Macroprudential Policy (MIT Press, 2015) and several book chapters such as in the Oxford Handbook of Banking (OUP, 2009) or in Finance and Investment: The European Case, (OUP, 2018).
Other Writings
- Posts by Prof. Peydró in VOX, CEPR policy portal
- Posts by Prof. Peydró in Economics blog Nada es gratis
- World Bank Blog All about Finance
Misc. writings
- Gulsen, E. & Peydró JL ‘Looking on the “bright side” of state banks‘ box 3.2 in chapter 3 State Banks on the Rise, in European Bank for Reconstruction and Development (EBRD) Transition Report 2020-21: The State Strikes Back, 2021, pp- 84-85.
- Peydró, JL ‘Financial Crises: Benefits and Fiscal Costs of Banking and Monetary Policies‘ in IEB Report on Supranational Policies to Overcome the Crisis, 4, 2015, 7-8.
- Credit Cycles and Systemic Risk, Els Opuscles del CREI, 35, 2013.
- Comment on ‘Risk Heterogeneity and Credit Supply: Evidence from the Mortgage Market,’ by T. Besley, N. Meads and P. Surico, in Acemoglu, D., Rogoff, K. and Woodford, M. (eds.), NBER Macroeconomics Annual 2012, vol. 27, Chicago: Chicago University Press, 2013, 420-428.
- Discussion of “The Effects of Bank Capital on Lending: What Do We Know, and What Does It Mean?” by Jose M. Berrospide and Rochelle M. Edge, International Journal of Central Banking: Special Issue on The Theory and Practice of Macroprudential Regulation, vol. 6(4), 2010, 55-70.
Other Links
ERC project Debt and Persistence of Financial Shocks [+] [Twitter]
Catalan Institution for Research and Advanced Studies (ICREA) [+]
Universitat Pompeu Fabra, Department of Economics [+]
Barcelona Graduate School of Economics [+]
Centre for Economic Policy Research (CEPR) [+]
European Systemic Risk Board (ESRB) [+]
Bank of Spain, Financial Stability [+]
Institut Català de Finances (ICF) [+]
Deutsche Bundesbank (research) [+]