Recently, Professor Yi Jin from our institute, serving as the corresponding author, has published a paper titled Managing Liquidity in Management Science, a top journal in management science. Founded in 1954, Management Science is published by the Institute for Operations Research and the Management Sciences (INFORMS). It is a prestigious and long-standing top journal covering management science and operations research. Its 2021 impact factor is 6.172, and its 5-year impact factor is 7.772. The journal is also listed among the top business school journals selected by the Financial Times.

The paper Managing Liquidity studies the impact of liquidity decisions on asset markets and macroeconomic performance. The author examines the link between liquidity allocation and capital allocation, pointing out that monetary policy and liquidity policy have a wide-ranging impact on private sector behavior and market efficiency by altering the liquidity premium of assets. Liquidity tightening is linked to credit easing; the former implies a reduction in the total amount of liquid debt (i.e., the sum of public and corporate liquid debt), while the latter implies an increase in funds raised by companies through the issuance of liquid debt instruments. The authors also found that capital allocation efficiency requires a positive liquidity premium to reduce corporate financing costs, while it requires a zero liquidity premium to ensure an abundance of liquid assets as a medium of exchange. The optimal policy strikes a balance between these two. Furthermore, due to the impact of liquidity risk on asset demand, government purchases of private sector debt are necessary to maintain low interest rates. This paper's analysis also extends to scenarios where there are liquidity differences between public and private sector debt and where capital possesses partial liquidity. The publication of Managing Liquidity represents another landmark achievement of our institute in finance and macroeconomics research

Professor Yi Jin earned his Ph.D. in Economics from the University of Iowa. He has previously taught at the University of Kansas (USA) and Monash University (Australia). His main research fields include macroeconomics and monetary economics. His research has been published in leading international journals such as Management Science, Journal of International Economics, Economic Theory, and Review of Economic Dynamics.

The Department of Finance and Accounting at the Institute of Economics and Management currently has 15 full-time faculty members, including 7 professors and 8 associate professors. It has formed a multi-level talent training system encompassing undergraduate (Finance and Accounting), master's (Finance, including specializations in capital markets, corporate finance, international finance, household finance, and financial institution research), and doctoral (Finance, including specializations in capital markets and securities investment, corporate finance, international finance, and household finance). The department is committed to cultivating modern financial professionals with an innovative spirit and an international perspective.

【Article link below】

https://doi.org/10.1287/mnsc.2022.4559