Macro Finance

Research in the Macro Finance department focuses on the interaction between financial markets, credit institutions, and the macroeconomy. Changes in credit conditions can shape the allocation of capital in the economy and thus affect investment, consumption, and economic growth. These interactions can amplify economic fluctuations and, in times of stress, contribute to financial crises with far-reaching consequences for firms, households, and governments. The key question is: What should a financial system look like that can help achieve societal goals, such as an increase in living standards, while avoiding financial crises? The department’s work combines macroeconomic and microeconomic perspectives, often constructing novel datasets that also benefit the public at large. The goal is to ultimately better understand how financial markets interact with the real economy and to inform policy decisions.


Publications

Author/s Title Area Type Published
Ignazio Angeloni, Ester Faia, Roland C. Winkler Exit Strategies
SAFE Working Paper No. 50
Macro Finance SAFE Working Paper 2014
Yacine Aït-Sahalia, Roger J. A. Laeven, Loriana Pelizzon Mutual Excitation in Eurozone Sovereign CDS
SAFE Working Paper No. 51
Financial Markets, Macro Finance, Systemic Risk Lab SAFE Working Paper 2014
Alfons J. Weichenrieder, Jochen Zimmer Euro Membership and Fiscal Reaction Functions
International Tax and Public Finance
Macro Finance Published Paper 2014
Gabriele Camera, Alessandro Gioffré Game-Theoretic Foundations of Monetary Equilibrium
Journal of Monetary Economics
Macro Finance Published Paper 2014
Marcel Bluhm, Jan Pieter Krahnen Systemic Risk in an Interconnected Banking System with Endogenous Asset Markets
Journal of Financial Stability
Macro Finance, Systemic Risk Lab Published Paper 2014
Ignazio Angeloni, Ester Faia, Roland C. Winkler Exit Strategies
European Economic Review
Macro Finance Published Paper 2014
Yacine Aït-Sahalia, Roger J. A. Laeven, Loriana Pelizzon Mutual Excitation in Eurozone Sovereign CDS
Journal of Econometrics
Financial Markets, Macro Finance, Systemic Risk Lab Published Paper 2014
Daniel Harenberg, Alexander Ludwig Idiosyncratic Risk, Aggregate Risk, and the Welfare Effects of Social Security
SAFE Working Paper No. 59
Household Finance, Macro Finance SAFE Working Paper 2014
Iñaki Aldasoro, Mike Seiferling Vertical Fiscal Imbalances and the Accumulation of Government Debt
SAFE Working Paper No. 61
Macro Finance SAFE Working Paper 2014
Dirk Bursian, Markus Roth Optimal Policy and Taylor Rule Cross-Checking Under Parameter Uncertainty
The B.E. Journal of Macroeconomics
Macro Finance Published Paper 2014

Current Research Team

Researcher Position
Kaas, Leo SAFE Fellow
Ludwig, Alexander SAFE Fellow
Müller, Karsten Professor
Nölke, Andreas SAFE Fellow
Weichenrieder, Alfons J. SAFE Fellow