Skip to Content
Cathy Zhang

Cathy Zhang

Associate Professor of Economics



Ph.D., Economics, University of California, Irvine
M.A., Economics, University of California, Irvine (2010)
B.A., Economics, University of California, Berkeley (2008)


Professor Zhang joined the Krannert faculty as an Assistant Professor in 2013 after receiving a Ph.D. and M.A. in Economics from the University of California, Irvine. Her research interests are in macroeconomics, monetary economics, international economcis, and search theory. Professor Zhang's current work examines the emergence of an international currency and the role of monetary policy on currency competition,  the adoption of new forms of electronic payments such as credit cards and its impact on monetary transactions, and an experimental study on competing means of payment. 


Journal Articles

  • Bethune, Z., Rocheteau, G., Wong, T. N., & Zhang, C (2022). Lending Relationships and Optimal Monetary Policy. Review of Economic Studies, vol. 89 (4), 1833–1872. | Related Website |
  • Gomis-Porqueras, Pedro and Cathy Zhang (2019). Optimal Monetary and Fiscal Policy in a Currency Union with Frictional Goods Markets. Macroeconomic Dynamics, | Download |
  • Janet Hua Jiang and Cathy Zhang (2018). Competing Currencies in the Laboratory. Journal of Economic Behavior and Organization,
  • Guillaume Rocheteau, Randall Wright, and Cathy Zhang (2018). Corporate Finance and Monetary Policy. American Economic Review, | Download |
  • Tai-Wei Hu and Cathy Zhang (2017). Responding to the Inflation Tax. Macroeconomic Dynamics, forthcoming. | Download |
  • Sebastien Lotz and Cathy Zhang. (2016). Money and Credit as Means of Payment: A New Monetarist Approach. Journal of Economic Theory, 164, 68-100. | Related Website | Download |
  • Cathy Zhang (2014). An Information-Based Theory of International Currency. Journal of International Economics, vol. 93 (2), 286-301. | Related Website | Download |
  • Gary Richardon and Cathy Zhang (2013). A Review of Barry Eichengreen's Exorbitant Privilege: the Rise and Fall of the Dollar and the Future of the International Monetary System. Economia, vol. 2 337-344.

Forthcoming Publications

  • Jiang, J. H., Puzzello, D., & Zhang, C. (2022). Inflation, Output, and Welfare in the Laboratory. European Economic Review,
  • Sorry we're closed sign

    Purdue economist: The Fed is becoming ‘a lender of last resort’ during COVID-19 pandemic

    One in four small businesse s is closed in the United States and a historic number of Americans are unemployed due to the spread of the COVID-19 pandemic. In response, the Federal Reserve has opened two facilities that will support the flow of credit to households and businesses. “The Fed is serving as a kind of ‘lender of last resort’ instead of using only conventional responses like interest rate cuts, which do not have much of an effect on consumption and investment at already low rates," says Purdue economist Cathy Zhang.

    Full story: Purdue economist: The Fed is becoming ‘a lender of last resort’ during COVID-19 pandemic

  • Faculty promotions at Purdue approved by board
    Purdue University’s Board of Trustees on Friday (April 12) approved the following faculty promotions within the Krannert School of Management effective with the 2019-20 academic year: Timothy N. Bond and Cathy M. Zhang; associate professor of economics; Sergey Chernenko and Thanh T. Nguyen; associate professor of management; Roy M. Dejoie, clinical associate professor of management; Troy D. Janes, clinical professor of management. Congratulations to all.

Office: RAWL 4026

Quick links

Personal website

Area(s) of Expertise

monetary economics, search theory, macroeconomics, international economics