Nobuhiro Kiyotaki
Encyclopedia
is a Japanese
economist
and professor
at Princeton University
especially known for proposing several models that provide deeper microeconomic foundations
for macroeconomics
, some of which play a prominent role in New Keynesian macroeconomics.
in 1978. After receiving his doctorate in economics from Harvard University
in 1985, Kiyotaki held faculty positions at the Univ. of Wisconsin–Madison
, the Univ. of Minnesota
, and the London School of Economics
before moving to Princeton.
He is a fellow of the Econometric Society
, was awarded the 1997 Nakahara Prize
of the Japan Economics Association and the 1999 Yrjö Jahnsson Award
of the European Economic Association
, the latter together with John Moore
. Thomson Reuters lists Kiyotaki among the 'citation laureates' who are likely future winners of the Nobel Prize in Economics.
, Kiyotaki demonstrated the importance of monopolistic competition
for the aggregate demand multiplier
. Most New Keynesian
macroeconomic models now assume monopolistic competition for the reasons outlined by Blanchard and Kiyotaki.
Later, Kiyotaki worked with Randall Wright
to construct a model of the role of money, showing how money increased economic efficiency by permitting trade of many different types of goods which might not be traded under a system of barter
. This model, which formalized William Stanley Jevons
' insight about the double coincidence of wants as a barrier to economic activity under barter, has come to be known as the Kiyotaki-Wright model.
In 1997, with John Moore
, Kiyotaki constructed a model to show how small shocks to the economy might be amplified into large output fluctuations through the interaction between real estate prices and restrictions on the availability of credit. This model of 'credit cycle
s' is now known as the Kiyotaki-Moore model
.
Japanese people
The are an ethnic group originating in the Japanese archipelago and are the predominant ethnic group of Japan. Worldwide, approximately 130 million people are of Japanese descent; of these, approximately 127 million are residents of Japan. People of Japanese ancestry who live in other countries...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and professor
Professor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
at Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
especially known for proposing several models that provide deeper microeconomic foundations
Microfoundations
In economics, the term microfoundations refers to the microeconomic analysis of the behavior of individual agents such as households or firms that underpins a macroeconomic theory....
for macroeconomics
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
, some of which play a prominent role in New Keynesian macroeconomics.
Career
He received a B.A. from University of TokyoUniversity of Tokyo
, abbreviated as , is a major research university located in Tokyo, Japan. The University has 10 faculties with a total of around 30,000 students, 2,100 of whom are foreign. Its five campuses are in Hongō, Komaba, Kashiwa, Shirokane and Nakano. It is considered to be the most prestigious university...
in 1978. After receiving his doctorate in economics from Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
in 1985, Kiyotaki held faculty positions at the Univ. of Wisconsin–Madison
University of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
, the Univ. of Minnesota
University of Minnesota
The University of Minnesota, Twin Cities is a public research university located in Minneapolis and St. Paul, Minnesota, United States. It is the oldest and largest part of the University of Minnesota system and has the fourth-largest main campus student body in the United States, with 52,557...
, and the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
before moving to Princeton.
He is a fellow of the Econometric Society
Econometric Society
The Econometric Society is an international society for the advancement of economic theory in its relation with statistics and mathematics. It was founded on December 29, 1930 at the Stalton Hotel in Cleveland, Ohio....
, was awarded the 1997 Nakahara Prize
Nakahara Prize
The Nakahara Prize is an annual award given by the Japanese Economic Association to Japanese economists under the age of 45 whose work has gained international recognition. The prize was created in 1995, and named after its sponsor Nobuyuki Nakahara...
of the Japan Economics Association and the 1999 Yrjö Jahnsson Award
Yrjö Jahnsson Award
The Yrjö Jahnsson Award is a biennial award given by the Finnish Yrjö Jahnsson Foundation and the European Economic Association to European economists under the age of 45 "who have made a contribution in theoretical and applied research that is significant to the study of economics in Europe." ...
of the European Economic Association
European Economic Association
The European Economic Association is a professional academic body which links European economists. It was founded in the mid-1980s. Its first annual congress was in 1986 in Vienna, Austria...
, the latter together with John Moore
John Hardman Moore
John Hardman Moore is an economic theorist. He was appointed Professor of Political Economy at the University of Edinburgh in 2000. Previously, in 1983, he was appointed to the London School of Economics, where in 1990 he became Professor of Economic Theory, a position he still holds.- Education...
. Thomson Reuters lists Kiyotaki among the 'citation laureates' who are likely future winners of the Nobel Prize in Economics.
Contributions
In 1987, together with Olivier BlanchardOlivier Blanchard
Olivier Jean Blanchard is currently the chief economist at the International Monetary Fund, a post he has held since September 1, 2008. He is also the Class of 1941 Professor of Economics at MIT, though he is currently on leave. Blanchard is one of the most cited economists in the world, according...
, Kiyotaki demonstrated the importance of monopolistic competition
Monopolistic competition
Monopolistic competition is imperfect competition where many competing producers sell products that are differentiated from one another...
for the aggregate demand multiplier
Multiplier (economics)
In economics, the fiscal multiplier is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending In economics, the fiscal...
. Most New Keynesian
New Keynesian economics
New Keynesian economics is a school of contemporary macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of New Classical macroeconomics.Two main assumptions define the New...
macroeconomic models now assume monopolistic competition for the reasons outlined by Blanchard and Kiyotaki.
Later, Kiyotaki worked with Randall Wright
Randall Wright
Randall D. Wright is a Canadian academic macroeconomist who advanced the fields of monetary economics and labor economics through his role in the development of matching theory.- Biography :...
to construct a model of the role of money, showing how money increased economic efficiency by permitting trade of many different types of goods which might not be traded under a system of barter
Barter
Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
. This model, which formalized William Stanley Jevons
William Stanley Jevons
William Stanley Jevons was a British economist and logician.Irving Fisher described his book The Theory of Political Economy as beginning the mathematical method in economics. It made the case that economics as a science concerned with quantities is necessarily mathematical...
' insight about the double coincidence of wants as a barrier to economic activity under barter, has come to be known as the Kiyotaki-Wright model.
In 1997, with John Moore
John Hardman Moore
John Hardman Moore is an economic theorist. He was appointed Professor of Political Economy at the University of Edinburgh in 2000. Previously, in 1983, he was appointed to the London School of Economics, where in 1990 he became Professor of Economic Theory, a position he still holds.- Education...
, Kiyotaki constructed a model to show how small shocks to the economy might be amplified into large output fluctuations through the interaction between real estate prices and restrictions on the availability of credit. This model of 'credit cycle
Credit cycle
The credit cycle is the expansion and contraction of access to credit over the course of the business cycle. Some economists, including Barry Eichengreen, Hyman Minsky, and other Post-Keynesian economists, and some members of the Austrian school, regard credit cycles as the fundamental process...
s' is now known as the Kiyotaki-Moore model
Kiyotaki-Moore model
The Kiyotaki–Moore model of credit cycles is an economic model developed by Nobuhiro Kiyotaki and John H. Moore that shows how small shocks to the economy might be amplified by credit restrictions, giving rise to large output fluctuations. The model assumes that borrowers cannot be forced to repay...
.