Advanced Search
MyIDEAS: Login

An Interview With Franco Modigliani


Author Info

  • Barnett, William A.
  • Solow, Robert


Franco Modigliani s contributions in economics and finance have transformed both fields. Although many other major contributions in those fields have come and gone, Modigliani s contributions seem to grow in importance with time. His famous 1944 article on liquidity preference has not only remained required reading for generations of Keynesian economists but has become part of the vocabulary of all economists. The implications of the life-cycle hypothesis of consumption and saving provided the primary motivation for the incorporation of finite lifetime models into macroeconomics and had a seminal role in the growth in macroeconomics of the overlapping generations approach to modeling of Allais, Samuelson, and Diamond. Modigliani and Miller s work on the cost of capital transformed corporate finance and deeply influenced subsequent research on investment, capital asset pricing, and recent research on derivatives. Modigliani received the Nobel Memorial Prize for Economics in 1985.In macroeconomic policy, Modigliani has remained influential on two continents. In the United States, he played a central role in the creation of a the Federal Reserve System s large-scale quarterly macroeconometric model, and he frequently participated in the semiannual meetings of academic consultants to the Board of Governors of the Federal Reserve System in Washington, D.C. His visibility in European policy matters is most evident in Italy, where nearly everyone seems to know him as a celebrity, from his frequent appearances in the media. In the rest of Europe, his visibility has been enhanced by his publication, with a group of distinguished European and American economists, of An Economists Manifesto on Unemployment in the European Union, which was signed by a number of famous economists and endorsed by several others.This interview was conducted in two parts on different dates in two different locations, and later unified. The initial interview was conducted by Robert Solow at Modigliani s vacation home in Martha s Vineyard. Following the transcription of the tape from that interview, the rest of the interview was conducted by William Barnett in Modigliani s apartment on the top floor of a high-rise building overlooking the Charles River near Harvard University in Cambridge, Massachusetts. Those concluding parts of the interview in Cambridge continued for the two days of November 5 6, 1999 with breaks for lunch and for the excellent espresso coffee prepared by Modigliani in an elaborate machine that would be owned only by someone who takes fine coffee seriously.Although the impact that Modigliani has had on the economics and finance professions is clear to all members of those professions, only his students can understand the inspiration that he has provided to them. However, that may have been adequately reflected by Robert Shiller at Yale University in correspondence regarding this interview, when he referred to Modigliani as: my hero.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
File Function: link to article abstract page
Download Restriction: no

Bibliographic Info

Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 4 (2000)
Issue (Month): 02 (June)
Pages: 222-256

as in new window
Handle: RePEc:cup:macdyn:v:4:y:2000:i:02:p:222-256_01

Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page:

Related research


Other versions of this item:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. cho, hyejin, 2014. "Macro Micro Model with a Post-keynesian Perspective in the banking industry," MPRA Paper 56119, University Library of Munich, Germany.
  2. Mauro Baranzini, 2005. "Modigliani's life-cycle theory of savings fifty years later," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 109-172.
  3. Yann Giraud, 2013. "The Political Economy of Textbook Writing : Paul Samuelson and the making of the first Ten Editions of Economics (1945-1976)," Working Papers hal-00870494, HAL.
  4. Marco Pagano, 2005. "The Modigliani-Miller theorems: a cornerstone of finance," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 237-247.
  5. Angus Deaton, 2005. "Franco Modigliani and the life-cycle theory of consumption," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 91-107.
  6. Marco Pagano, 2005. "I teoremi di Modigliani-Miller: una pietra miliare della finanza," Moneta e Credito, Economia civile, vol. 58(230-231), pages 255-267.
  7. Mauro Baranzini, 2005. "Modigliani's life-cycle theory of savings fifty years later," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 109-172.
  8. Móczár, József, 2010. "Paul A. Samuelson, a közgazdaságtan utolsó nagy generalistája (1915-2009). Matematika és közgazdaságtan
    [Paul A. Samuelson, economics` last great generalist (1915-2009). Mathematics and econ
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 371-379.
  9. Angus Deaton, 2005. "Franco Modigliani e la teoria del ciclo vitale del consumo," Moneta e Credito, Economia civile, vol. 58(230-231), pages 97-115.
  10. Ulrich Fritsche & Camille Logeay, 2002. "Structural Unemployment and the Output Gap in Germany: Evidence from an SVAR Analysis within a Hysteresis Framework," Discussion Papers of DIW Berlin 312, DIW Berlin, German Institute for Economic Research.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:cup:macdyn:v:4:y:2000:i:02:p:222-256_01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.