About

Kathryn M. Dominguez is the Marina von Neumann Whitman Distinguished University Professor of Public Policy and Associate Dean for Academic Affairs at the Gerald R. Ford School of Public Policy. She also holds positions as Professor of Economics and Honors Director in the Department of Economics. Her research interests include international financial markets and macroeconomics, with numerous articles on foreign exchange rate behavior. She is the author of works such as 'Exchange Rate Efficiency and the Behavior of International Asset Markets' and 'Does Foreign Exchange Intervention Work?' Dominguez serves as a research associate at the National Bureau of Economic Research, a member of the Panel of Economic Advisers at the Congressional Budget Office, and on the Advisory Scientific Committee of the European Systemic Risk Board. She has worked as a research consultant for organizations including USAID, the Federal Reserve System, the International Monetary Fund, the World Bank, and the Bank for International Settlements. She teaches courses in macroeconomics, finance, and international economics at the Ford School. Dr. Dominguez received her PhD from Yale University.

Research topics

• Monetary economics
• Economics
• Computer Science
• Macroeconomics
• Market economy
• Business
• Finance
• Engineering
• Financial system
• International economics

Selected publications

• Consequences of Last-Resort Policy for Central Bank Balance Sheets

  Contributions to finance and accounting · 2025-01-01

  book-chapterOpen access1st authorCorresponding

  Abstract Pandemic-era financial instability required central banks around the world to expand their roles as lenders of last resort and, in some cases, become market makers of last resort. These extraordinary interventions stabilized financial markets by restoring funding and market liquidity, while at the same time greatly expanding central bank balance sheets and increasing central bank risk exposure. This paper examines the implications of pandemice-era last-resort policy interventions on central bank balance sheets, providing a comparative analysis of expanded asset holdings, subsequent balance sheet reductions as part of quantitative tightening, and announcements of losses. The evidence suggests that markets have had a benign view of central bank losses due to the measures taken in extraordinary circumstances. The impacts of last-resort policies during the pandemic do not seem to have diminished central banks’ ability to achieve monetary policy and financial stability objectives.

  PublisherOA PDFDOI

• Whatever-it-Takes Policymaking During the Pandemic

  SSRN Electronic Journal · 2024-01-01

  articleOpen access1st authorCorresponding
  PublisherDOI

• Whatever-It-Takes Policymaking during the Pandemic

  National Bureau of Economic Research · 2024-02-01

  reportOpen access1st authorCorresponding

  Central banks across the globe introduced large-scale asset purchase programs to address the unprecedented circumstances experienced during the pandemic.Many of these programs were announced as open-ended to shock-and-awe market participants and restore confidence in financial markets.This paper examines whether these whatever-it-takes announcements had larger effects than announcements with explicit limits on scale.We use a narrative approach to categorize announcements made by twenty-two central banks, and event study, propensity-scorematching, and local projection methods to measure the short-term effects of policy announcements on exchange rates and sovereign bond yields.We find that on average a central bank's first whatever-it-takes announcement lowers 10-year bond yields by an additional 47 basis points relative to size-limited announcements, suggesting that communication of potential policy scale matters.Our results for yields hold for both advanced and emerging economies, while exchange rates go in opposing directions, muting their response when we group all countries together.

  PublisherOA PDFDOI

• Whatever-it-takes policymaking during the pandemic

  Journal of International Economics · 2024-03-13 · 2 citations

  articleOpen access1st authorCorresponding

  Central banks across the globe introduced large-scale asset purchase programs to address the unprecedented circumstances experienced during the pandemic. Many of these programs were announced as open-ended to shock-and-awe market participants and restore confidence in financial markets. This paper examines whether these whatever-it-takes announcements had larger effects than announcements with explicit limits on scale. We use a narrative approach to categorize announcements made by twenty-two central banks, and event study, propensity-score-matching, and local projection methods to measure the short-term effects of policy announcements on exchange rates and sovereign bond yields. We find that on average a central bank’s first whatever-it-takes announcement lowers 10-year bond yields by an additional 47 basis points relative to size-limited announcements, suggesting that communication of potential policy scale matters. Our results for yields hold for both advanced and emerging economies, while exchange rates go in opposing directions, muting their response when we group all countries together.

  PublisherDOI

• Stabilising Financial Markets: Lending and Market Making as a Last Resort

  SSRN Electronic Journal · 2023 · 32 citations

  • Business
  • Financial system
  • Finance
  PublisherDOI

• Economic Development and Rail Infrastructure

  Advances in public policy and administration (APPA) book series · 2022-10-28

  book-chapter1st authorCorresponding

  “Public transit” is a term usually associated with urban life. The term “commuter” is usually associated to suburban dwellers. One envisions rural dwellers as farmers, far from urban areas. Those who live in Northwest Indiana enjoy urban, suburban, and rural life, with easy access to the second largest city in the United States, Chicago. Access to a major metropolitan area allows inhabitants of Northwest Indiana to earn an income that is commiserate to an urban lifestyle, but with options of lower-cost housing, utilities, and amenities offered in suburban and rural communities.

  PublisherDOI

• The Financial Stability Implications of support measures to protect the real economy from the COVID-19 pandemic

  Institutional Research Information System University of Turin (University of Turin) · 2021-01-01 · 10 citations

  articleOpen access
  PublisherDOI

• The Global Dimensions of Macroprudential Policy

  SSRN Electronic Journal · 2020-01-01 · 4 citations

  articleOpen access
  PublisherDOI

• Revisiting Exchange Rate Rules

  IMF Economic Review · 2020 · 15 citations

  1st authorCorresponding
  • Computer Science
  • Economics
  • Monetary economics
  PublisherDOI

• The Global Dimensions of Macroprudential Policy

  SSRN Electronic Journal · 2020-01-01

  articleOpen access
  PublisherDOI

Frequent coauthors

• Anusha Chari

  University of North Carolina at Chapel Hill

  46 shared

• Wenjie Chen

  Beijing Institute of Technology

  40 shared

• Linda L. Tesar

  University of Michigan–Ann Arbor

  28 shared

• Willem H. Buiter

  New York Proton Center

  26 shared

• Richard Portes

  London Business School

  18 shared

• Thorsten Beck

  18 shared

• Rasmus Fatum

  University of Alberta

  11 shared

• Pavel Vacek

  11 shared

Education

• PhD, Economics

  Yale University

  1987

Awards & honors

• University of Michigan Distinguished University Professor (2…