Diplom-Volkswirt, University Heidelberg, Federal Republic of Germany, 1970. Doctor of Philosophy, Massachusetts Institute of Technology, 1973. Professor of Economics (honorary), University Vienna, Austria, 1988.
Honorary Doctor, University Tübingen, Germany, 2002.
Research associate Stanford (California) University, 1973-1974. Assistant professor Princeton (New Jersey) University, 1974-1977. Associate professor University Bonn, Federal Republic of Germany, 1977-1979, professor Federal Republic of Germany, 1979-1987, University Basel, Switzerland, 1987—1996, University Mannheim, Germany, 1996—2004.
Taussig Research professor Harvard University, 1995—1996. Director Max Planck Institute for Research on Collective Goods, Bonn, Germany, since 2004. Inaugural fellow European Corporation Governance Institute, Brussels, 2002.
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.
Fellow Econometric Society (council member 1988-1994, 99-04, executive committee 1989-1991), European Economic Association (vice president, president-elect, president 1990-1992), Verein für Socialpolitik (president 2001-2004), Rotary. Member American Academy Arts and Sciences (foreign honorary member), Academia Europaea, Berlin-Brandenburgische Akademie der Wissenschaften, American economic Association (honorary), Monopolies Commission/Germany (chairman 2000-2004).
Married Dorothee Eckle. Children: Christian, Susanne, Irene, Klaus-Peter.