Objective The last decade had seen an increasing recognition that financial markets play a key role over the business cycle. Still, there have not been many detailed, systematic, empirical investigations on the consumption, employment and investment effects of the interaction between macroeconomic policies and the evolving structure of credit markets. This proposal aims to develop a research agenda over the next five years that combines insights from disaggregated data sets --which are either newly available or I propose to construct-- on (i) mortgage originations, (ii) the supply of household financial products and (iii) firms’ debt originations, with the development of theoretical frameworks that introduce credit supply and demand heterogeneity in the analyses of consumption and investment decisions.Three features of this proposal make it of potentially high impact. On the empirical side, the analysis of existing and novel detailed households’, firms’ and lenders’ data sets will allow us to identify new stylized facts on the transmission of monetary policy to real activity through financial markets (and leverage and asset prices in particular). On the theoretical side, these stylized facts will be used to develop and discriminate among competing channels of macroeconomic policy transmission. Finally, the regularity highlighted in both the empirical and theoretical analyses will inform the public debate on the design of future monetary and macro-prudential policy interventions.Each project (i)-(iv) describes an overall theme, which is expected to have several ramifications in terms of publishable papers, policy reports and possibly dissertation contents for PhD student(s). Fields of science social scienceseconomics and businesseconomicsmacroeconomicssocial scienceseconomics and businesseconomicsmonetary and financessocial scienceseconomics and businessbusiness and managementemployment Programme(s) H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC) Main Programme Topic(s) ERC-2017-COG - ERC Consolidator Grant Call for proposal ERC-2017-COG See other projects for this call Funding Scheme ERC-COG - Consolidator Grant Host institution LONDON BUSINESS SCHOOL Net EU contribution € 1 135 940,00 Address REGENT S PARK NW1 4SA London United Kingdom See on map Region London Inner London — West Westminster Activity type Higher or Secondary Education Establishments Links Contact the organisation Opens in new window Website Opens in new window Participation in EU R&I programmes Opens in new window HORIZON collaboration network Opens in new window Total cost € 1 135 940,00 Beneficiaries (1) Sort alphabetically Sort by Net EU contribution Expand all Collapse all LONDON BUSINESS SCHOOL United Kingdom Net EU contribution € 1 135 940,00 Address REGENT S PARK NW1 4SA London See on map Region London Inner London — West Westminster Activity type Higher or Secondary Education Establishments Links Contact the organisation Opens in new window Website Opens in new window Participation in EU R&I programmes Opens in new window HORIZON collaboration network Opens in new window Total cost € 1 135 940,00
