The Banque de France and the Toulouse School of Economics launch a series of prizes in Monetary Economics and Finance. These prizes, granted annually for the Junior Prize and every two years for the Senior Prize, distinguish academic researchers who have developed central concepts to improve our understanding of Monetary Economics and Finance. The aim of the prizes is to foster conceptual progress that will eventually allow the design and implementation of improved policies by central banks.

Senior Prize 

2014 Nobuhiro Kiyotaki

Nobuhiro Kiyotaki is Professor of Economics (Princetone University) and received his Ph.D. at Harvard. He received the Stephen A. Ross Prize in Financial Economics in 2012 , the Yrjo Jahnsson Award in 1999 and the EA-Nakahara Prize in 1997.
In 1997, with Professor John Moore, Professor Kiyotaki constructed a model to show how small shocks to the economy might be amplified into large output fluctuations through the interaction between real estate prices and restrictions on the availability of credit. This model has been particularly helpful for understanding the recent financial crisis and has inspired many recent influential papers.

2012 Bengt R.Holmström

Bengt R. Holmström is one of the most prominent economic theorists in the world. He started his career with truly pioneering contributions to the theory of incentives, successively laying down the foundations for a) the classic moral hazard model, unveiling the sufficient statistics principle for managerial compensation, as well as the determination of circumstances under which optimal contracts are linear, b) moral hazard in teams, c) career concerns, and d) multi-tasking. He has also made important contributions to the theory of labour contracts (e.g. his work on wage dynamics).


Junior Prize 

2014 Ralph Koijen and Iván Werning

Ralph Koijen is Professor of Finance at London Business School. Prior to that, he was Associate Professor of Finance at the University of Chicago, Booth School of Business. He received his Ph.D. at Tilburg University in 2008.

His research covers a very broad spectrum in finance: macro-finance and asset pricing, insurance and household finance, financial econometrics.
Recently, Professor Koijen has studied the impact of regulation on strategic decisions by insurance companies: he is able to show how companies engage in regulation avoidance (“shadow insurance”) and how accounting rules led during the crisis to the issuance of policies that were motivated by regulatory aribitrage.

Iván Werning is Professor of Economics at MIT and holds a Ph.D. from the University of Chicago. Professor Werning is one of the main contributors of the New Public Finance literature.
Recently, Professor Werning has extensively studied the working of currency unions and the desirability of fiscal unions, the size of fiscal multipliers in liquidity traps and the role of labor mobility in currency unions. He has focussed on the role of macro-prudential policies. Ex ante macro-prudential policies can lower the build up in debt during credit booms. Lower debt mitigates, or potentially avoids altogether, the problem generated by the liquidity trap. Such a macro-prudential policy allows for individual borrowers to internalize the harm that their debt have in the ensuing crisis.

2013 Lasse H.Pedersen and Emmanuel Farhi

Lasse Heje Pedersen is Professor of Finance at the Copenhagen Business School since September 2011, on leave from the NYU Stern School of Business. He is a research associate at CEPR and NBER, a principal at AQR Capital Management, and a Director of the American Finance Association. Lasse has also served on advisory boards of the Federal Reserve Bank of New York, NASDAQ and FTSE, and on the editorial boards of the Journal of Finance, Journal of Economic Theory, and Quarterly Journal of Economics.His research focuses on asset pricing and liquidity risk. It shows how the interaction of market and funding liquidity can create liquidity spirals and systemic financial crisis. Indeed, when everyone runs for the exit, prices drop-and-rebound, margins increase, and risk management tighten. His contribution is a breakthrough in our understanding of systemic risks on financial markets

Emmanuel Farhi is a Professor of Economics at Harvard University and a 2006 MIT PhD. He is a research associate at the National Bureau of Economic Research, the Center for Economic Policy Research, as well as a fellow of the Toulouse School of Economics. He is also an associate editor of the American Economic Review. From 2010 to 2012, he was a member of the French Economic Analysis Council to the French Prime Minister. In 2010, he received a Sloan Research Fellowship. He was awarded the 2009 Bernacèr Prize for the best European economist under the age of 40 by the Observatory of the European Central Bank. His research focuses on macroeconomics, finance, international economics, and public finance. He showed how trends in FDI, exchange rates and interest rates can be generated by differentials in financial markets capabilities; he has also analyzed currency crashes and the role of capital controls. In a series of papers, he has established himself as a pioneer of dynamic aspects of taxation, including income taxation over the lifecycle and estate taxation. A recent line of research studies alternatives to currency devaluations in currency unions under wage or price rigidities; he shows that private insurance is inefficiently low even in a union with perfect financial markets and identifies circumstances in which a fiscal union is particularly beneficial. Other recent lines of investigation analyze unconventional policies at the zero lower bound and formalize the collective moral hazard  problem that can be created by authorities intervention in the case of financial crisis.


2012 Klaus Adam and Viral V.Acharya

Klaus Adam is one of the most prolific and accomplished young macroeconomic theorists based in Europe. His work spans an eclectic but wide set of topics within macroeconomic theory, such as non-Bayesian expectations, learning, monetary and fiscal policy. He has contributed to the crucial topic of modelling expectations, and has studied the role of expectational mechanisms in macroeconomic and financial dynamics. This research is important in recognizing the effects of expectation feedbacks as sources of price volatility and market instability.

Klaus Adam has also extensively examined the effects of the zero lower bound on interest rates for monetary policy. This work has proven extremely useful for enhancing our understanding and organizing the discussion of monetary policy in recent years.

Viral V. Acharya extensive contribution to the analysis of systemic risk in the financial sector distinguishes him as one of the most influent financial economists based outside Europe.

Viral Acharya has significantly contributed to both the theoretical and empirical analyses of the financial sector. He has studied the distorsions giving rise to systemic risk, and his work helps improve the design of regulations. His inquiry cuts across several other strands of research – credit risk and liquidity risk, their interactions and agency-theoretic foundations, as well as their general equilibrium consequences.

Press Releases

2013- 2014 Laureates  (in French)

2012 Laureates


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Useful links

  1. The Banque de France was partnership of the Annual SED Conference organized by Toulouse School of Economics in 2016 : 

  2. A quaterly magazine published by Toulouse School of Economics

  3. Articles published by Rue de la Banque