Philippe Bacchetta
SFI Senior Chair, Professor of Economics, University of Lausanne
Philippe Bacchetta is Professor of Macroeconomics at the University of Lausanne. Professor Bacchetta has provided consultancy services to numerous central banks worldwide and has been a visiting scholar at the International Monetary Fund on several occasions.
Expertise
Professor Bacchetta studies the impact of market frictions on investors holding a global equity portfolio. Theory predicts that market frictions lead to more gradual portfolio adjustments to shocks and to weaker portfolio responses to changes in expected excess returns. Based on data covering more than 40 countries over more than 30 years, empirical results show that these predictions are consistent with a broad set of evidence related to portfolios and equity prices and excess returns for intermediate friction levels. Such evidence includes portfolio inertia, significant financial shocks, and asset price momentum and reversal. Professor Bacchetta actively participates in SFI Knowledge Exchange activities on central bank policies, low interest rates, and global capital flows.
Expertise Fields
- Financial Markets
- Central Banks and Monetary Policy
- Financial Crises
- International Financial Markets and Emerging Markets
- Portfolio Management and Asset Classes
- Foreign Exchange