The research group consists of:

• macroeconomists mainly interested in the analysis of business fluctuations, the effects of monetary and fiscal policy, exchange rate dynamics, financial fragility and crises. The preferred theoretical framework is dynamic stochastic general equilibrium. Some researchers are also interested in developing macroeconomic models based on heterogeneous agents.
• econometricians mainly interested in the study of causal relations between macro and financial variables via dynamic models, with an emphasis on developing methods of inference for macro-financial econometric models.

Research Topics
 

1. Macroeconomics modeling

• Monetary and fiscal policy in the presence of "frictions"
• Central banking, monetary and financial stability
• Exchange rate regimes and macroeconomic performance in advanced and emerging markets
• The impact of  the distribution of heterogeneous agents on macroeconomic performance and on the effectiveness of monetary and fiscal policy
• Departures from rationality in expectations formation in the presence of heterogeneous agents and their impact on macroeconomic performance
• The impact of dispersed information on macroeconomic outcomes
• Macroeconomic models with stochastic rationing
• Energy and the macroeconomy
• International trade, fiscal policy and the macroeconomy
   

2. Empirica Macro-Finance

• The macro-finance interface: how macro conditions determine asset prices and how asset prices determine macro conditions
• Early warning indicators of macro-financial risk
• Commodity/energy markets ad the macroeconomy
   

Presentation of the Research Group