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Philippe Bacchetta
SFI Senior Chair
Professor of Economics

Philippe Bacchetta is Professor of Economics at the University of Lausanne. He joined SFI in 2006, and has been an SFI Senior Chair since 2013. He holds a PhD in Economics from Harvard University. He has been a visiting scholar at the International Monetary Fund on several occasions and has provided consultancy services at numerous central banks around the world.


Listen to Prof. Philippe Bacchetta speak about his research.

Research Interests:
His research focuses primarily on international finance, financial crises, and monetary economics.
Recent Research:
One of Prof. Bacchetta’s recent coauthored studies revisits the question of whether increased money holdings crowd out physical investment and contribute to lower growth. The authors’ contribution to the literature is to take asset scarcity and price flexibility into consideration. Their results challenge the classical vision that money has no long-run effect and suggest that investments can be negatively related to money holdings when an economy is facing a liquidity trap. Overall, the paper finds that quantitative easing is ineffective at the Zero Lower Bound and can delay the exit from a liquidity trap. In terms of a policy recommendation, it may be better to increase the shadow rate than to decrease the effective real interest rate.