ERC Consolidator Grant · 2016
Theory and Empirics of Asymmetry
Why is there a Volcker disinflation but no Bernanke re-inflation? It is not only because of the zero lower bound as a nascent literature is suggesting that monetary policy is more potent in a contractionary stance than in an expansionary stance away from the ZLB as well. But why? Why is it that central banks cut interest rates much faster than they raise them? Why does it seem like financial markets give much different responses to seemingly similar macroeconomic news at different times? Are these all related? This research project is about asymmetries in macroeconomics and finance. I will be working on these questions because our current understanding of these issues hints at some facets…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.