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Macro-Risk Assessment and Stabilization Policies with New
Early Warning Signals

Objective

RASTANEWS intends to enhance knowledge base, at both theoretical and an applied level, on many aspects of the future of macro-economic and monetary integration in Europe thus paving the way to a revised governance of the EMU, and the EU as a whole, in the wake of the debt crisis. We see three key issues about the working of the EU macro-economy that deserve deeper investigation. The first is the issue of incomplete and informationally inefficient financial markets, the Achille’s heel of the consensus DSGE models. The second, related issue, is the heterogeneity in expectations, which should play a fundamental role in explaining the behaviour of asset prices. The third issue is the need to overcome the traditional dichotomy between Keynesian (short run) and neoclassical (long run) policy prescriptions. Taking these issues seriously has important implications for the conduct of EU monetary and fiscal policies and for EU governance system. In addition, to facilitate the timely identification of macro risks, we propose a new system of early warning indicators, to be implemented within the EMU surveillance mechanism. This proposal is consistent with our theoretical framework and is based on an empirical macro-finance approach.

Field of science

  • /social sciences/economics and business/business and management/commerce
  • /social sciences/sociology/governance

Call for proposal

FP7-SSH-2012-2
See other projects for this call

Funding Scheme

CP-FP - Small or medium-scale focused research project

Coordinator

UNIVERSITA' DEGLI STUDI DI MILANO-BICOCCA
Address
Piazza Dell'ateneo Nuovo 1
20126 Milano
Italy
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 522 537,25
Administrative Contact
Silvia Pesenti (Mrs.)

Participants (11)

FONDATION NATIONALE DES SCIENCES POLITIQUES
France
EU contribution
€ 292 920
Address
Rue Saint Guillaume 27
75337 Paris
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Estelle Frisquet (Ms.)
ISTITUTO PER GLI STUDI DI POLITICA INTERNAZIONALE
Italy
EU contribution
€ 513 136
Address
Via Clerici 5
20121 Milano
Activity type
Research Organisations
Administrative Contact
Antonino Villafranca (Prof.)
RUPRECHT-KARLS-UNIVERSITAET HEIDELBERG
Germany
EU contribution
€ 86 149,82
Address
Seminarstrasse 2
69117 Heidelberg
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Verena Schultz-Coulon (Dr.)
KATHOLIEKE UNIVERSITEIT LEUVEN
Belgium
EU contribution
€ 117 000
Address
Oude Markt 13
3000 Leuven
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Sarah Malevé (Ms.)
UNIVERSITA CATTOLICA DEL SACRO CUORE
Italy
EU contribution
€ 175 710
Address
Largo Gemelli 1
20123 Milano
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Guido Castelli (Dr.)
POLSKI INSTYTUT SPRAW MIEDZYNARODOWYCH
Poland
EU contribution
€ 96 596
Address
Warecka 1A
00 950 Warszawa
Activity type
Research Organisations
Administrative Contact
Aleksander Szałański (Mr.)
UNIVERSITA POLITECNICA DELLE MARCHE
Italy
EU contribution
€ 184 212
Address
Piazza Roma 22
60121 Ancona
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Francesco Maria Chelli (Prof.)
BRUNEL UNIVERSITY LONDON
United Kingdom
EU contribution
€ 87 380
Address
Kingston Lane
UB8 3PH Uxbridge
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Teresa Waller (Ms.)
QUEEN MARY UNIVERSITY OF LONDON
United Kingdom
EU contribution
€ 81 000
Address
327 Mile End Road
E1 4NS London
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Reuben Almeida (Mr.)
PECSI TUDOMANYEGYETEM - UNIVERSITY OF PECS
Hungary
EU contribution
€ 89 196
Address
Vasvari Pal Utca 4
7622 Pecs
Activity type
Higher or Secondary Education Establishments
Administrative Contact
Gábor Rácz (Mr.)
UNIVERSITEIT VAN AMSTERDAM
Netherlands
EU contribution
€ 193 937,93
Address
Spui 21
1012WX Amsterdam
Activity type
Higher or Secondary Education Establishments
Administrative Contact
T.M.M. Klerkx (Mrs.)