Working papers

With Charles Martineau and Jordi Mondria

Presentations: Future of Financial Information Conference 2023, Transatlantic Doctoral Conference London Business School 2023, Northern Finance Association Annual Meeting 2023, Midwest Finance Association Annual Meeting 2024.

Media attention: Rotman Insights Hub.

Information production from investment social networks around earnings announcements matters to price efficiency. Social networks’ content is excessively optimistic and associated with buying pressure before announcements. Such pressure deviates prices away from fundamentals before negative news and towards fundamentals before positive news. In rare cases of extreme pessimism, we find selling price pressure before positive and negative earnings news. Surges in retail trading and investors’ beliefs susceptible to manipulation amplify these effects. Our results suggest that social networks induce optimistic trading, consistent with a model of wishful thinking

Pre Ph.D. research

Advisor Charles Calomiris

This thesis aims to find evidence of the “fear of floating” in three Latin American countries: Mexico, Chile, and Brazil. By considering the role of the exchange rate in their monetary policy and describing it as an augmented forward-looking Taylor Rule with interest rate smoothing. If the Taylor Rule does not describe the behavior of their target rates, then evidence of “fear of floating” will be found.

With several members of the Study Group established by the Markets Committee,

This report presents the Group’s findings. Among other sources, it is based on information from structured interviews with market participants, a Markets Committee workshop in January 2018, and a survey of central banks’ current and planned initiatives in market monitoring. The report highlights key recent developments in market structure, includes statistics on notable trends, and outlines the priorities and approaches of central banks in undertaking near-time and medium-term market monitoring.