Department of Economics

Macroeconomics and Finance

Our Macroeconomics and Finance group conduct theoretical and empirical work across many areas of modern macroeconomics and finance.

Research focus

Our work is focused on these main areas:

  • New Keynesian Macroeconomics and Monetary and Fiscal Policy
  • Systemic risk, Financial Stability and Agent-Based Computational Economics
  • Exchange rate models and the Taylor rule.
  • Dynamic General Equilibrium Models of Macroeconomics and Finance
  • Optimal Macroeconomic Policy in Models of Asymmetric Information and Time-Varying Volatility
  • Applied Macro-econometrics
  • Empirical financial economics and corporate finance

We have regular internal meetings and externally-focused workshops to support research, by sharing findings and results with high-profile academic visitors and policy-makers.

Research staff

Dr Stylianos Asimakopoulos' research interests lie in the fields of macroeconomics, dynamic programming, optimal fiscal policy, debt management and financial frictions. In addition, Stylianos is working on applied macroeconomics and financial economics topics utilising mixed frequency data models, threshold analysis in panel data models, forecasting and now-casting techniques. His work has been published in the Journal of Financial and Quantitative Analysis, Journal of Economic Dynamics and Control, Journal of Financial Stability, Economics Letters and Macroeconomic Dynamics.

Ian Corrick works on the theory and estimation of New Keynesian DSGE models with information frictions. Other interests include the general application of numerical methods to the solution of macroeconomic models.

Dr Matteo De Tina works on optimal monetary policy in DSGE models and theory and simulations of DSGE models with money, under limited market participation. Other interests include methods of dynamic optimisation and history of economic thought.

Dr Nikolaos Kokonas (group leader) works in macroeconomics and general equilibrium. He is interested in general equilibrium models with behavioural assumptions on preferences, in overlapping generation economies and in macroeconomic models with unemployment.

Dr Andreas Krause's research focuses on systemic risk, financial stability and agent-based computational finance. He makes extensive use of computer simulations to explore model that include heterogeneous agents interacting directly with each other rather than representative individuals using a range of methods developed across a range of disciplines, including economics, computer science and physics. He has published in a wide range of journals including the Journal of Economic Behavior & Organization, IEEE Transactions on Systems, Man and Cybernetics, Physica A, and Journal of Intelligent Learning Systems and Applications. He has supervised PhD students in his research area as well other fields in finance.

Prof Chris Martin is a specialist in monetary policy and New Keynesian DSGE models. His work has been cited more than 925 times. He has published in the Review of Economics and Statistics, Economic Journal, Economica and Oxford Economic Papers. He is a member of the Bank of England Monetary Policy Roundtable and a member of the expert panel for surveys of the Centre for Macroeconomics, based at the LSE. He appears regularly in the media. He has supervised many PhD students and led research projects.

Dr Bruce Morley is a specialist in international finance and macroeconomics; he has also worked on topics dealing with economic growth and the environment. His work has been cited more than 300 times. He has published in the Journal of International Financial Markets, Institutions and Money, Ecological Economics, Regional Economics and the Journal of the Royal Operational Research Society among other journals. He has also regularly presented his research at the Royal Economic Society Money Macro Finance conferences. He has appeared many times in the media and supervised many Ph.D. students mainly on international finance topics.

Dr Asgerdur Petursdottir conducts research in the area of macroeconomics and monetary economics. Currently her research focuses on money and finance related issues such as monetary policy, macroprudential measures, housing markets and credit conditions. Asgerdur’s focus has been on frictional markets and she uses a search-theoretic approach when conducting her research. Her recent work has made a theoretical contribution to the advancement of the study of housing and financial markets in a search-theoretic monetary framework.

Dr Vito Polito's research interests are in the general areas of dynamic general equilibrium models of macroeconomics and finance, monetary and fiscal policy analysis, and optimal control of macroeconomic systems with time-varying volatility and asymmetric information. His current work includes:

  1. combining the Black and Scholes’ model of default probability with dynamic general equilibrium models of sovereign credit risk
  2. the study of optimal unemployment insurance with asymmetric information when agents have access to criminal opportunities
  3. the analysis of optimal policy in macroeconomic models with time-varying volatility.

Dr Maik T. Schneider conducts research on Economic Growth and Political Economy. Maik is interested in economic policy fostering long-run welfare and how economic policy is shaped in the political process. His research comprises work on the role of basic research policy and intellectual property rights for economic growth and welfare, the growth and welfare implications of ageing societies, lobbying, and the effects of (partial) commitment to campaign promises on election outcomes and policy.

Working papers

Title Author
Assymetric Adjustment and Intervention in the UK Housing Market
Chasing the Gap: Speed Limits and Optimal Monetary Policy
Search Frictions, Efficiency Wages and Equilibrium Unemployment
The Policy Window: The Impact of Financial Stress in the UK
The Feldstein-Horioka puzzle and capital mobility: The role of the recent crisis
Optimal Hedge Fund Contract Parameters: Theory and Empirical Evidence
Liquidity and Solvency Shocks in a Network Model of Systemic Risk: The Impact of Minimum Capital and Reserve Requirements
The Role of Interbank Lending in the Prediction of Individual Bank Failures during a Banking Crisis: Analysis of a Network Model of Systemic Risk
Unemployment, Crime and Social Insurance
  • I. Long
  • V. Polito
The impact of macroeconomic uncertainty and the risk of a Eurozone breakup on the dynamics and volatility of the EUR-USD exchange rate
Optimal Control of Heteroskedastic Macroeconomic Models
  • V. Polito
  • P. Spencer
Is the UK triple-A?
  • V. Polito
  • M. Wickens
Sovereign Credit Rating in the European Union: A Model-Based Fiscal Analysis
  • V. Polito
  • M. Wickens