Assistant Professor at @NYUStern researching links between finance and the macroeconomy.
New York, NY
Joined October 2018
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Dan Greenwald 🇺🇦 retweeted
Summary of our paper "Monetary Transmission through Bank Securities Portfolios" 👇joint work with @ProfGreenwald and John Krainer, now forthcoming in the Journal of Finance @JofFinance 🎉
How does monetary policy affect bank lending when rate changes revalue securities? A new Economic Letter finds that how regulators treat bank securities shapes how powerfully monetary policy transmits to the broader economy. sffed.us/4ijgIsw
Dan Greenwald 🇺🇦 retweeted
Thanks to all who contributed to our successful three-day summer school for PhD students at @TuftsEconomics.
Presentation slides from our six faculty presenters are now available on the UEA webpage: urbaneconomics.org/workshops…
Dan Greenwald 🇺🇦 retweeted
Banks facing losses on their securities portfolios cut lending to firms, but mainly when those losses tighten their capital requirements, from @ProfGreenwald, John Krainer, and @pascalpaul nber.org/papers/w32449
Dan Greenwald 🇺🇦 retweeted
Wealth inequality increases when r declines👇
papers.ssrn.com/sol3/papers.…
By the way, while it is a widely held view that wealth inequality is high when r-g is large because of Piketty's book, this is not true among economists who understand finance or have just looked at the data.
As the graph below shows, there is a perfect time correlation between the level of wealth concentration and the inverse of r (1/r, represented here by the price of bonds).
The fact that the correlation between wealth inequality and r-g in the data is the opposite of what the Piketty story predicts was pointed early on in Acemoglu and Robinson (2015).
It's incredible that a story that is rejected by casual regressions/plotting the data is so popular.
Intuitively, falling interest rates have the direct mechanical effect of increasing the market value of assets, and in particular that of long-term assets such as start ups and stocks, which tends to be disproportionally owned by the rich. It also inflates the fair value of non-tradable assets such as Social Security benefits which disproportionnally accrue to the middle-class but are left out of these computations in most of the literature.
Dan Greenwald 🇺🇦 retweeted
The key driver of this tight relation between inequality and r is the fact that the wealthiest households have much duration than other households, leading to the concentration of capital gains in the right tail of the wealth distribution when r declines.
By the way, while it is a widely held view that wealth inequality is high when r-g is large because of Piketty's book, this is not true among economists who understand finance or have just looked at the data.
As the graph below shows, there is a perfect time correlation between the level of wealth concentration and the inverse of r (1/r, represented here by the price of bonds).
The fact that the correlation between wealth inequality and r-g in the data is the opposite of what the Piketty story predicts was pointed early on in Acemoglu and Robinson (2015).
It's incredible that a story that is rejected by casual regressions/plotting the data is so popular.
Intuitively, falling interest rates have the direct mechanical effect of increasing the market value of assets, and in particular that of long-term assets such as start ups and stocks, which tends to be disproportionally owned by the rich. It also inflates the fair value of non-tradable assets such as Social Security benefits which disproportionnally accrue to the middle-class but are left out of these computations in most of the literature.
Dan Greenwald 🇺🇦 retweeted
Hiring a predoc with @ProfGreenwald at NYU Stern to work on real estate and finance. Apply here!
apply.interfolio.com/135959
@econ_ra
Dan Greenwald 🇺🇦 retweeted
Race prediction algorithms, which are widely used by regulators, have high and problematic errors in the small business lending context, from @ProfGreenwald, Sabrina T. Howell, Cangyuan Li, and Emmanuel Yimfor nber.org/papers/w31646
Dan Greenwald 🇺🇦 retweeted
My @NYUStern colleagues and I have put together an e-book "SVB and Beyond: The Banking Stress of 2023." It brings together different perspectives on how we got here and what to do next. Check it out!
stern.nyu.edu/experience-ste…
Dan Greenwald 🇺🇦 retweeted
Re bank accounting and unrealized losses:
1. As many have noted, banks are sitting on big unrealized losses on loans and securities. They don’t appear on the balance sheet because loans and securities are held at book value and not marked to market. How worried should we be?
Dan Greenwald 🇺🇦 retweeted
SVB got in trouble for investing in MBS. It’s certainly not alone in doing so. Why do banks invest in assets like MBS in the first place? 1/
Dan Greenwald 🇺🇦 retweeted
#SternRealEstate is thrilled to welcome Dan Greenwald (@ProfGreenwald) to the faculty of Stern’s Finance Department. Professor Greenwald's research centers on the connections between financial markets and the macroeconomy, with a particular focus on credit markets.
Dan Greenwald 🇺🇦 retweeted
The Macro Finance Research Program (MFR), which I lead, is holding our 2022 Summer Session for Young Scholars on August 1-4, 2022 at the University of Chicago. Read more and learn how to apply here: @BeckerFriedman bfi.uchicago.edu/news/macro-…
Dan Greenwald 🇺🇦 retweeted
If you happen to be online at 3:45pm EST, join us for a session on the allocative effects of bank lending decisions and the interaction between banks' loan business and the pass-through to their deposit rates. @AdrienMatray @AnneDuquerroy @ProfGreenwald @pascalpaul @StephanLuck
Dan Greenwald 🇺🇦 retweeted
Looking forward to our session on "Housing and the Macroeconomy" tomorrow at 3:45pm ET at #ASSA2022 🏘️
Many thanks to @ProfGreenwald @LaurenlambieH @AnthonyDeFusco @k13agnes @J_Meanwell @AurelHizmo and many others (not on twitter) for participating!
aeaweb.org/conference/2022/p…
Dan Greenwald 🇺🇦 retweeted
Pre-Doctoral Technical Associate
Sponsoring Researchers: @ProfGreenwald, @EmilVerner
Institution: @MITSloan
Fields of research: #Finance, #macroeconomics, household finance
Apply at bit.ly/3E4LSg8
@econ_ra
Dan Greenwald 🇺🇦 retweeted
Hi #econtwitter! @ProfGreenwald and I are hiring a full-time pre-doc research assistant for a position starting summer 2022. Come work with us on a wide range of topics in finance and macro. Apply here: tinyurl.com/bddbt8ja
Dan Greenwald 🇺🇦 retweeted
Very happy that our paper “The Transmission of Monetary Policy under the Microscope” has been published in @JPolEcon, joint work with @BlomhoffHolm and @ATischbi. With a slight delay, here is a short summary! journals.uchicago.edu/doi/10… (1/N)
Dan Greenwald 🇺🇦 retweeted
Credit played an important role in the 2000s housing boom and bust and can explain between 34 and 55 percent of the boom, from @ProfGreenwald and Adam Guren nber.org/papers/w29391
Dan Greenwald 🇺🇦 retweeted
I am deeply saddened by the loss of Tom Cooley. I thought I would write a few lines to remember him that can also help me come to terms with it.