Centre for Macroeconomics

Research Programmes

The centre has five research programmes, led by programme leaders. The research programmes are designed to meet three objectives: (i) better flow of communication and advice between academics and policy makers; (ii) improved research to underpin better decisions and (iii) capacity building. The research programmes are explained in detail in the Centre’s Research Proposal and are outlined briefly below.

Programme 1: Developing new methodologies

Programme 1 focuses on alternative approaches to studying macroeconomic questions and on developing tools with which more complex models can be analysed. There are several research projects covering a wide range of theoretical and empirical topics. On the theory side, there are projects that focus on the role of expectations for business cycles, bounded rationality, nonlinearities and heterogeneous-agent models. On the empirical side, there are projects focusing on empirical techniques to deal with time-varying relationships, nonlinearities and the use of cross-sectional information to learn about macroeconomics.
Programme leader: Wouter Den Haan

Programme 2: Consequences of fiscal austerity plans and high debt levels

Programme 2 examines positive and normative aspects of fiscal policy. It studies the impact of high public debt on the economy, for example, through higher sovereign debt premia; and the interaction between debt, fiscal policy and the financial sector.
Programme leaders: Giancarlo Corsetti (Cambridge) and Morten Ravn (UCL).

Programme 3: Interaction between financial markets, monetary policy, and the macro economy

Programme 3 focuses on the interaction between financial markets and real activity and in particular what this interaction means for designing policies to prevent crises and policies to dampen the impact of a crisis.
Programme leaders: Giancarlo Corsetti (Cambridge) and Wouter Den Haan (LSE).

Programme 4: Shifts in the world economy and their consequences

This programme's aim is to better understand differences across countries and to design macroeconomic policies that enhance growth and reduce global imbalances.
Programme leaders: Francesco Caselli (LSE) and Silvana Tenreyro (LSE).

Programme 5: Labour markets; unemployment levels after a severe crisis and long-term prospects

Programme 5 examines labour markets during deep recessions, (lack of) mobility, and labour market trends. The key question of this research programme is how to avoid an increase in the incidence of long-term unemployment following a severe economic downturn.
Programme leader: Chris Pissarides (LSE).

Detailed programme activities [PDF].