On Tuesday 17th October the project held a Post-Crisis Macroeconomics Workshop in Edinburgh.
Paul Beaudry began the workshop by highlighting the medium-term cyclical properties of economic activity, and discussing the possible link between business and financial cycles. David Romer summarised recent research on how to measure financial distress consistently across advanced countries and presented new findings on economic activity after financial crises. Franck Portier showed that real Keynesian models provide a better description of business-cycle data than new/nominal Keynesian models, and drew implications for monetary policy. John Moore explored the topic of ‘leverage stacks’, explaining why gross positions between banks exist and how they may increase the vulnerability of the financial system.
In the evening, Christina Romer gave a public lecture co-hosted with the David Hume Institute. Christina’s lecture showed that the economic consequences of financial crises are less severe in countries which are free to use monetary fiscal policies to cushion the blow. The implications for the conduct of monetary and fiscal policy in ‘normal times’ were discussed in a subsequent Q&A.
Videos of all talks will be available soon.
The MacCaLM project extends warm thanks to the David Hume Institute for their assistance and support in hosting this event.
Photographs by Douglas Robertson.