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
Nina Biljanovska, Spyridon Palligkinis Control Thyself: Self-Control Failure and Household Wealth
SAFE Working Paper No. 69
Household Finance, Macro Finance SAFE Working Paper 2014
Daniel Harenberg, Alexander Ludwig Social Security in an Analytically Tractable Overlapping Generations Model with Aggregate and Idiosyncratic Risk
SAFE Working Paper No. 71
Household Finance, Macro Finance SAFE Working Paper 2014
Alexander Ludwig, Matthias Schön Endogenous Grids in Higher Dimensions: Delaunay Interpolation and Hybrid Methods
SAFE Working Paper No. 72
Household Finance, Macro Finance SAFE Working Paper 2014
Max Groneck, Alexander Ludwig, Alexander Zimper A Life-Cycle Model with Ambiguous Survival Beliefs
SAFE Working Paper No. 73
Household Finance, Macro Finance SAFE Working Paper 2014
Alberto Alesina, Carlo Ambrogio Favero, Francesco Giavazzi, Andreas Müller The Output Effect of Fiscal Consolidation Plans
SAFE Working Paper No. 76
Macro Finance SAFE Working Paper 2014
Benjamin Born, Gernot J. Müller, Johannes Pfeifer Does Austerity Pay Off?
SAFE Working Paper No. 77
Macro Finance SAFE Working Paper 2014
Harris Dellas, Dirk Niepelt Austerity
SAFE Working Paper No. 78
Macro Finance SAFE Working Paper 2014
Òscar Jordà, Alan M. Taylor The Time for Austerity: Estimating the Average Treatment Effect of Fiscal Policy
SAFE Working Paper No. 79
Macro Finance SAFE Working Paper 2014
Enrique G. Mendoza, Linda L. Tesar, Jing Zhang Saving Europe?: The Unpleasant Arithmetic of Fiscal Austerity in Integrated Economies
SAFE Working Paper No. 80
Macro Finance SAFE Working Paper 2014
Otmar Issing Challenges for Monetary Policy
White Paper No. 7
Macro Finance Policy Paper 2013

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