Research Topic

Macroeconomic Policies over the Business Cycle

The research project "Macroeconomic Policies over the Business Cycle" explores the role of macroeconomic policies to overcome business cycles, including in situations when traditional tools are unavailable or ineffective. The analysis is based on the insights developed in the research project "Forecasting and business cycle analysis", so the two projects are closely intertwined.

The types of policy considered include fiscal policy, monetary policy, macroprudential policies, and labor market policies, among other things. We also explore the transmission mechanisms through which these types of policy affect the economy. These transmission mechanisms include nominal rigidities, hiring frictions, and incomplete credit markets.