Fernando Mendo is a PhD. candidate in Economics at Princeton University. His research interests lie in the intersection of finance and macroeconomics. In particular, his job market paper studies the two risk dimensions that emerge endogenously in an economy with financial frictions: the amplification of real economic fluctuations, and the exposure to systemic runs of creditors. Besides unveiling distinct vulnerability regions for these risks and their interactions, the project shows that it is optimal to avoid environments of extremely low volatility (of exogenous productivity shocks) because they induce large endogenous exposures.
Other research explores the real effects of monetary policy (without prices stickiness) when considering the following widespread features of modern financial systems: money as a liability of financial institutions, money creation through credit provision, and nominal loan contracts.
Fernando holds a B.S. and a M.S. in Economics from Universidad del Pacifico (Lima, Peru) where he graduated as class valedictorian. Before starting his doctoral studies, he worked at World Bank as a Junior Professional Associate.