The In the aftermath of the global financial crisis macroeconomic policy finds itself in unknown territory. The traditional paradigm of macroeconomic analysis has been questioned, and suggestions for alternatives have been brought forward, such as approaches based on insights from behavioural economics. Moreover, the crisis has resulted in high uncertainty about the effectiveness of standard macroeconomic policy tools. Monetary policy in major countries currently operates under a zero-bound constraint and relies on unconventional measures for which there is little previous experience. In the same vein, fighting recessions through anti-cyclical fiscal policies is becoming increasingly difficult, as the steep rise of public debt in many countries exerts pressure for budget consolidation even in situations where aggregate demand is still weak. On top of this, there is the issue of global imbalances and the challenges which they pose for macroeconomic policy. The aim of the summer school is to consider these various issues and to explore ways to create a new framework for macroeconomic stabilization policy.
Roel Beetsma, University of Amsterdam
Giancarlo Corsetti, University of Cambridge
Paul de Grauwe, University of Leuven
Philip Lane, University of Dublin
Frank Smets , European Central Bank