Cathy Zhang

Associate Professor of Economics
Director of Graduate Studies in Economics
Economics

Education

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 Purdue 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 work examines the emergence of an international currency and the role of monetary policy on currency competition, banking and financial intermediation, and experiemental studies on competing means of payment, effects of inflation, and monetary policy transmission.

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 |

Are “Living Wills” for Banks the Solution?
The recent critique by U.S. regulators of the “living wills” submitted by major banks underscores ongoing concerns about the resilience and preparedness of these financial giants in the face of potential crises.
Full story: Are “Living Wills” for Banks the Solution?
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.
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.
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.