Macroeconomics studies the economic system looking at the interaction of goods, labor and financial markets. It aims to explain output fluctuations and crises, inflation dynamics and unemployment. Macroeconomists and macro-financial econometricians focus on these themes and the role of monetary and fiscal policies. They work on dynamic macroeconomics, building from microfoundations aggregating the optimal intertemporal choices of economic agents who solve a dynamic problem under the constraints posed by the structure of the economy. Researchers make use of dynamic stochastic general equilibrium (DSGE) models to analyze business cycle fluctuations and the effects of monetary and fiscal policy. Recently, particular attention has been devoted to: the effects of monetary policy in presence of financial frictions, banking and concern for financial stability; the dynamics of entry and exit of firms in the economy; the role of expectations and the effects of monetary and fiscal policies; public debt management and sovereign debt crises.
Researchers working in this area make use of theoretical as well as empirical methods, using model simulation and econometric analysis. The results of their research appears in journals such as Economic Journal, Economic Policy, European Economic Review, Journal of Applied Econometrics, Journal of Econometrics, Journal of Economic Dynamics and Control, Journal of Economic Literature, Journal of Financial Stability, Journal of Monetary Economics, Journal of Money, Credit and Banking, Review of Economic Dynamics.
Monetary economics, monetary and fiscal policy; macro and financial stability, DSGE modelling; business cycle fluctuations, inflation dynamics; wage and price rigidities; public debt; international finance, financial econometrics; economics of crime.
- Luca Fosso