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Marco Bassetto

Marco Bassetto Senior Research Economist

Minneapolis, Minnesota USA

Marco Bassetto joined the Federal Reserve Bank of Minneapolis as a senior research economist in 2019. Formerly, he was a senior economist and research advisor in the Economic Research Department at the Federal Reserve Bank of Chicago. He has also been a professor at University College London and an assistant professor at the University of Minnesota and at Northwestern University. He received a B.A. from Bocconi University (Milan, Italy) and a Ph.D. in economics from the University of Chicago.

Marco’s research focuses on applications of game theory to macroeconomics and the design and consistency of macroeconomic policy. His work has been published in a number of top-tier journals, including American Economic Review, Econometrica, Quarterly Journal of Economics, Review of Economic Studies, Journal of Economic Theory, Journal of Monetary Economics, Review of Economic Dynamics, and Journal of Economic Dynamics and Control.

Is Inflation Default? The Role of Information in Debt Crises
2019 | American Economic Review, 109(10): 3556-84 | With Carlo Galli

Forward Guidance: Communication, Commitment, or Both?
2019 | Journal of Monetary Economics, 108: 69-86

The Fiscal Theory of the Price Level in a World of Low Interest Rates
2018 | Journal of Economic Dynamics and Control, 89: 5-22 | With Wei Cui

Speculative Runs on Interest Rate Pegs
2015 | Journal of Monetary Economics, 73: 99-114 | With Christopher Phalen

Credit Crunches and Credit Allocation in a Model of Entrepreneurship
2015 | Review of Economic Dynamics, 18(1): 53-76 | With Marco Cagetti and Mariacristina De Nardi

Optimal Fiscal Policy with Heterogeneous Agents
2014 | Quantitative Economics, 5(3): 675-704

Fiscal Consequences of Paying Interest on Reserves
2013 | Fiscal Studies, 34(4): 413-436 | With Todd Messer

Tax Riots
2008 | The Review of Economic Studies, 75(3): 649-669 | With Christopher Phalen

Political Economy of Taxation in an Overlapping-Generations Economy
2008 | Review of Economic Dynamics, 11(1): 18-43

Politics and Efficiency of Separating Capital and Ordinary Government Budgets
2006 | The Quarterly Journal of Economics, 121(4): 1167-1210 | With Thomas J. Sargent

Redistribution, Taxes, and the Median Voter
2006 | Review of Economic Dynamics, 9(2): 211-223 | With Jess Benhabib

Equilibrium and Government Commitment
2005 | Journal of Economic Theory, 124(1), 79-105

On the Irrelevance of Government Debt When Taxes are Distortionary
2004 | Journal of Monetary Economics, 51(2): 299-304 | With Narayana Kocherlakota

A Game-Theoretic View of the Fiscal Theory of the Price Level
2002 | Econometrica, 70(6): 2167-2195

Exchange Rate and Inflation Risks in Portfolio Choices
1991 | Rivista Internazionale di Scienze Economiche e Commerciali, 38(10/11): 949-968