David Marshall retired as associate director of research, director of the financial markets group and a senior vice president in the economic research department of the Federal Reserve Bank of Chicago in March 2018. Prior to this appointment in July 2010, he was senior vice president of the financial markets group and, previously, a vice president and economic advisor in the economic research department of the Federal Reserve Bank of Chicago. In that position, Marshall served as the team leader for the department's macroeconomics group. His research focused on linkages between financial markets, financial institutions and macroeconomic performance.
Marshall's research has been published in Econometrica, the Journal of Finance, the Journal of Financial Economics, European Finance Review, the Journal of Monetary Economics and the Journal of Money, Credit and Banking.
Before coming to the Federal Reserve System, Marshall was on the faculty of the Kellogg Graduate School of Management at Northwestern University. He also served as adjunct professor of finance at the University of Chicago and was an associate editor for Macroeconomic Dynamics.
Marshall received a B.A. from Yale University and M.S. and Ph.D. degrees in economics from Carnegie-Mellon University.
With Edward Simpson Prescott, 2006, "State-Contingent Bank Regulation with Unobserved Action and Unobserved Characteristics," Journal of Economic Dynamics and Control, Vol. 30, No. 11, November, pp. 2015-2049.
2005, “Comment on ‘Estimating the Expected Marginal Rate of Substitution’,” Journal of Monetary Economics, Vol. 52, No. 5, July, p. 971.
2002, "Financial Crises and Coordination Failure: A Comment," Journal of Banking and Finance, Vol. 26, No. 2-3, March, pp. 547-555.
With William C. Hunter, 2002, "Systemic Risk and Central Banking: A Review of Some Recent Developments," in Productivity and Economic Performance in the Asia-Pacific Region, Tsu-Tan Fu, Cliff J. Huang and C. A. Knox Lovell (eds.), Cheltenham, UK: Edward Elgar, pp. 17-35.
With Edward S. Prescott, 2001, “Bank Capital Regulation with and without State-Contingent Penalties,” Carnegie-Rochester Conference Series on Public Policy, Vol. 54, pp. 139-184.
With Geert Bekaert and Robert Hodrick, 2001, "'Peso Problem' Explanations for Term Structure Anomalies," Journal of Monetary Economics, Vol. 48, No. 2, October, pp. 241-270.
With Subu Venkataraman, 1999, "Bank Capital Standards for Market Risk: A Welfare Analysis," European Finance Review, Vol. 2, pp. 125-157.
With Nayan G. Parekh, 1999, "Can Costs of Consumption Adjustment Explain Asset Pricing Puzzles," Journal of Finance, Vol. 54, No. 2, pp. 623-654.
With Charles L. Evans, 1998, "Monetary Policy and the Term Structure of Nominal Interest Rates: Evidence and Theory," Carnegie-Rochester Conference Series on Public Policy, Vol. 49, December, pp. 53-111.
1997, "Comment on 'The CAPM Risk Adjustment for Exact Aggregation over Financial Assets'," Macroeconomic Dynamics, Vol. 1, No. 2, pp. 513-517.
With Kent Daniel, 1997, "The Equity Premium Puzzle and the Risk-Free Rate Puzzle at Long Horizons," Macroeconomic Dynamics, Vol. 1, No. 2, pp. 452-484.
With Geert Bekaert and Robert Hodrick, 1997, "The Implications of First-Order Risk Aversion for Asset Market Risk Premiums," Journal of Monetary Economics, Vol. 40, No. 1, September, pp. 3-40.
With Geert Bekaert and Robert Hodrick, 1997, "On Biases in Tests of the Expectations Hypothesis of the Term Structure of Interest Rates," Journal of Financial Economics, Vol. 44, No. 3, June, pp. 309-348.
1995, "Comment on 'Estimating Policy-Invariant Deep Parameters in the Financial Sector, When Risk and Growth Matter'," Journal of Money, Credit and Banking, Vol. 27, No. 4, November, Part 2, pp. 1436-1440.
1993, "Comment on 'Search, Bargaining, Money and Prices: Some Recent Results and Policy Implications'," Journal of Money, Credit and Banking, Vol. 25, No. 3, August, Part 2.
1992, "The Co-Movements of Asset Returns and Inflation: A Survey of the Literature," Cuadernos Economicos de ICE, Vol. 50, pp. 59-79. (in Spanish).
1992, "Inflation and Asset Returns in a Monetary Economy," Journal of Finance, Vol. 47, No. 4, September, pp. 1315-1342.
With Lawrence J. Christiano and Martin Eichenbaum, 1991, "The Permanent Income Hypothesis Revisited," Econometrica, Vol. 59, No. 2, March, pp. 397-423.
Liquidity, Settlement Risk, and Systemic Stability
A speech delivered on September 9, 2017, before the World Federation of Exchanges Annual Meeting in Bangkok, Thailand.