Macroeconomics Research Group
Macroeconomics addresses the performance, structure, behavior, and decision-making of an economy as a whole. This entails studying economy-wide phenomena such as output, unemployment, national income, inflation, economic growth, and how they interact in aggregate economies.
Additionally, Macroeconomics involves people making decisions based upon what they think will happen, and what will happen depends on what decisions people make. Consequently, the concept of equilibrium must be dynamic. Solving equilibrium often requires sophisticated techniques. Bulk of macroeconomic theorizing develops methods to achieve this. Much of the research is quantitative and empirical in trying to quantify the aggregate outcome economic policies using economic models as laboratories.
Most of the contemporary macroeconomics research is policy driven. Fiscal policy is the use of government's expenditures, taxes and debt as instruments to influence the aggregate outcome of an economy. Finding the right balance between policy measures and intertemporal budget constraints is often the main question. Inflation is the outcome of the monetary policy. Inflation interacts with real economy and this trade-off is at the core of research on monetary policy. Financial crisis has put the macroprudential policy high on the research macroeconomics research agenda. Macroprudential policy aims safeguarding the financial system as a whole. Key research question is how financial systems interact with real economy and what are suitable policy tools for safeguarding the system.
Antti Ripatti, professor, group leader
Pertti Haaparanta, professor
Niku Määttänen, professor
Tapio Palokangas, professor
Juha Tervala, professor (acting)
Seppo Orjasniemi, Secretary-General, Economic Policy Council
Artturi Björk, PhD student
Lauro Carnicelli, PhD student
Louise Hohenthal, PhD student
Michael Hohenthal, PhD student
Kristine Koponen, PhD student
Julia Niemeläinen, PhD student
Anni Norring, PhD student
Juho Peltonen, PhD student
Ville Pikkarainen, PhD student
Michaela Schmöller, PhD student
Saara Tuuli, PhD student
The research project on “Banks’ Decisions under Uncertainty and their Macroeconomic Impact” aims at studying banks’ strategic responses to aggregate uncertainty and their macroeconomic effects. It proposes to analyze banks as strategic agents in the macroeconomic system and thus their crucial role in terms of economic outcomes. An essential dimension relates to the way in which payoff uncertainty affects banks' risk-taking attitude, in turn impacting firms’ access to credit and thus business cycles. Adequate macroprudential regulations are also investigated.
Research on economic growth factors and cycles addresses the basics of macroeconomics. The group has particularly explored the impact of international trade, globalisation (e.g., economic unions), environmental factors and economic institutions (e.g., the structure of the labour market) on economic growth. Population economics has studied, for example, the impact of air pollution on mortality and economic growth.
Interaction of fiscal and monetary policy is one of the core questions studied by the group. In the times of crises, the monetary policy might be constraint by the zero lower bound of nominal interest rates. This might influence the effectiveness of fiscal policy instruments such as indirect taxation and public investments.
Housing forms the most important part of household wealth and significant part of household consumption. This means that it also has a large impact of the real economy in general. The research group studies how housing related taxation affects household decision on housing, consumption and economic welfare.