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Content archived on 2024-05-27

Mmpa

Objective

The classical model of the macro-economy is based on the assumptions of continuous market clearing, perfect information and perfect competition. In the last thirty years this classical paradigm has been revived in models incorporating rationality in expectation-formation. At the same time this paradigm has been found by many researchers to be at odds with reality - various forms of rigidities and frictions change the dynamics of key macroeconomic variables and affect the equilibrium allocation of resources in a non-trivial way.

The increasing importance of rigidities and frictions in building plausible models of the economy and in policy design has led many economists to study carefully the theoretical underpinnings of friction-based models and to include various forms of rigidities in their theoretical analysis. The proposed conferences focus on the interaction of financial frictions and rigidities in macroeconomic models and their impact on policy making. There are many questions that deserve closer investigation and we hope that having a high-profile series of conferences on these topics will contribute to the deepening of our understanding of the role of frictions and rigidities in the macro-economy.

Call for proposal

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Coordinator

CENTRE FOR ECONOMIC POLICY RESEARCH
EU contribution
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Address
GOSWELL ROAD 90-98
EC1V 7RR LONDON
United Kingdom

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Total cost
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