Jeremy Stein

Jeremy Stein is a professor of economics at Harvard University who served on the Federal Reserve Board of Governors from 2012 to 2014. His academic research focuses on corporate finance, financial markets, and the interaction between monetary policy and financial stability. A key contribution is the concept of "reach for yield" — the tendency of investors in a low-interest rate environment to take on additional credit risk or duration risk to maintain returns. Stein argued at the Fed that monetary policy could and should incorporate financial stability concerns, not just inflation and employment. His research on the fragility of short-term funding markets has been highly influential in discussions about shadow banking systemic risk. His analysis of debt maturity structure and the vulnerability of institutions relying on short-term funding to rollover risk has directly informed post-crisis regulatory reforms to liquidity requirements.