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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

Working Papers

  • Pedro Gomis-Porqueras and Cathy Zhang (2017). "Optimal Monetary and Fiscal Policy with Migration in a Currency Union."
  • Guillaume Rocheteau, Russell Tsz-Nga Wong, and Cathy Zhang (2017). "Lending Relationships and Optimal Monetary Policy." | Related Website |
  • Purdue Expert: NFTs Explained

    Cathy Zhang is an associate professor of economics in the Purdue University Krannert School of Management. In this video, she explains what non-fungible tokens (NFT’s) are and their applications.

    Full story: Purdue Expert: NFTs Explained

  • Purdue Expert: Cryptocurrency
    Cathy Zhang is an associate professor of economics in the Purdue University Krannert School of Management. She explains that forms of payment are becoming increasingly digitized, with cryptocurrency being one alternative.
  • 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.

Office: RAWL 4026

Quick links

Personal website

Area(s) of Expertise

Financial Institutions/Banking, Macroeconomics