We’d like to congratulate Assistant Professor Saki Bigio for being awarded a National Science Foundation (NSF) grant for his research titled “A Model of Credit, Money, Interest and Prices” (Joint with Professor Yuliy Sannikov from Stanford Business School).

His research formalizes the idea that central banks have more tools than is traditionally thought. Namely, central banks can control inflation and credit spreads. The study argues that managing credit spreads is a desirable policy tool and can be achieved with a central bank balance sheet policy.

The NSF funds research and education in most fields of science and engineering.  It does this through grants, and cooperative agreements to more than 2,000 colleges, universities, k-12 school systems, businesses, informal science organizations and other research organizations throughout the United States. The Foundation accounts for about one-fourth of federal support to academic institutions for basic research. NSF receives approximately 40,000 proposals each year for research, education and training projects, of which approximately 11,000 are funded. Source