Research interests involve the microeconomic foundations of monetary theory, the economics of information and capital markets. Work on monetary theory concerns the development and analysis of equilibrium models of money, based on precautionary money holding or transactions. Work in the other areas concerns rational expectations equilibria — with and without communication through prices — insurance markets with moral hazard, and the economics of credit and bankruptcy.
Research Association, Stanford University, 1973-1974. Assistant Professor, Princeton University, 1974-1977. Association Professor, University Bonn,1977-1979.
Professor of Economics, University Bonn, Bonn, W. Germany, since 1979. Foreign Editor, Review of Economic Studies, 1982.