Category Archives: New models for understanding recessions and optimal policy responses

ADEMU explained: Macroeconomic stabilization with heterogeneous agents, video with Morten Ravn

Morten Ravn provides a short overview of macroeconomic stabilization in this short video. Continue reading

POLICY BRIEF: Macroeconomic stabilisation in heterogeneous societies


  • To construct a quantitative model where distributional issues matter
  • To use that model to analyse previously unconsidered shocks
  • To display new interactions between fiscal and monetary policies useful for stabilisation purposes

By Morten Ravn

View the policy brief.

ADEMU explained: Recessions following expansions and the instability of market economies, video with Franck Portier

Franck Portier explains why market economies are fundamentally unstable in this short video. Continue reading

POLICY BRIEF: Recessions following expansions: The instability of market economies


  • To provide new facts about business cycles in the economy and challenge the common view that the economy is fundamentally stable 
  • Developing models that illustrate a necessary trade-off between severity and length of recessions 
  • Recommend structural policies to limit recessions, rather than responses to shocks

By Paul Beaudry, Dana Galizia and Franck Portier

View the policy brief.