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Louvain Institute of Data Analysis and Modeling in economics and statistics

Institute of Economic and Social Research

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Louvain Institute of Data Analysis and Modeling in economics and statistics

Institute of Economic and Social Research

Macroeconomic and Monetary Economics

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IRES Researchers in Macroeconomics and Monetary Economics

Photo of Vincent Bodart
Vincent Bodart
Professeur ordinaire

SSH/ESPO Faculty of Economic, Social and Political Sciences and Communication (ESPO)

SSH/ESPO/ECON Ecole des Sciences économiques/Economics School of Louvain (ECON)

SSH/IDAM Louvain Institute of Data Analysis and Modeling in economics and statistics (LIDAM)

SSH/IDAM/IRES Institut de recherches économiques et sociales (IRES)

E-mail perso
vincent.bodart@uclouvain.be
Nom de l’entite
IRES - Collège Léon Dupriez
Place Montesquieu 3
1348 Louvain-la-Neuve
010474144
010474144
Photo of Fabio Mariani
Fabio Mariani
Professeur ordinaire

SSH/ESPO Faculty of Economic, Social and Political Sciences and Communication (ESPO)

SSH/ESPO/ECON Ecole des Sciences économiques/Economics School of Louvain (ECON)

SSH/IDAM Louvain Institute of Data Analysis and Modeling in economics and statistics (LIDAM)

SSH/IDAM/IRES Institut de recherches économiques et sociales (IRES)

E-mail perso
fabio.mariani@uclouvain.be
Nom de l’entite
-

010473439
Photo of Rigas Oikonomou
Rigas Oikonomou
Professeur

SSH/ESPO Faculty of Economic, Social and Political Sciences and Communication (ESPO)

SSH/ESPO/ECON Ecole des Sciences économiques/Economics School of Louvain (ECON)

SSH/IDAM Louvain Institute of Data Analysis and Modeling in economics and statistics (LIDAM)

SSH/IDAM/IRES Institut de recherches économiques et sociales (IRES)

E-mail perso
rigas.oikonomou@uclouvain.be
Nom de l’entite
IRES - Collège Léon Dupriez
Place Montesquieu 3
1348 Louvain-la-Neuve
010473970
Photo of Luca Pensieroso
Luca Pensieroso
Professeur

SSH/ESPO Faculty of Economic, Social and Political Sciences and Communication (ESPO)

SSH/ESPO/ECON Ecole des Sciences économiques/Economics School of Louvain (ECON)

SSH/IDAM Louvain Institute of Data Analysis and Modeling in economics and statistics (LIDAM)

SSH/IDAM/IRES Institut de recherches économiques et sociales (IRES)

E-mail perso
luca.pensieroso@uclouvain.be
Nom de l’entite
IRES - Collège Léon Dupriez
Place Montesquieu 3
1348 Louvain-la-Neuve
010473508
010473945

IRES Research Projects in Macroeconomics and monetary Economics

 

  • Sponsor: National Bank of Belgium
  • IRES Promoter: Rigas Oikonomou
  • Start date: 2019
  • End date: 2021

Project description

Standard macroeconomic models of optimal debt management (DM) assume that interest rates do not hit the zero-lower bound. Yet since 2009 and until 2015, the US has been in a liquidity trap (LT) with interest rates stuck at zero. We argue that the standard insights of the DM literature, that governments should issue long-term and nominal debt, do not apply in LTs. We construct macroeconomic models of DM under a variety of institutional setups (experimenting with both coordinated and uncoordinated monetary and fiscal policies) to investigate the optimal structure of debt in a LT. When coordination is lacking between fiscal and monetary authorities, pursuing their respective objectives may lead to conflicting DM strategies with implications for macroeconomic volatility and welfare. Hence, we look at Markov perfect equilibria, where the two authorities choose optimal policies and also intervene in the secondary market to buy debt from private agents. In this sense, our framework is suitable to talk about the Federal Reserve’s QE program and also about the debt issuance policies of the Treasury in the Great recession.

  • Sponsor: National Bank of Belgium
  • IRES Promoter: Rigas Oikonomou

Project description

This project is on quantitative macroeconomics, in particular on models of heterogeneous agents and on optimal fiscal policy models. A first paper analyzes the importance of the secondary market for durables, for the risk sharing opportunities in an incomplete financial market. A second paper is a DSGE model with optimal tax and debt policies applied to the US data.


Journal Articles


1. Bertrand, Aurélie; Bodart, Vincent; Clarr, Margaux; De Bundel, Florian; Guillet, Alain; Lachapelle, Nathan; Notte, Vincent; Van Keirsbilck, Leïla. Perspectives économiques 2024. In: Regards économiques, , no.182, p. 1-11 (2024). doi:10.14428/regardseco/2024.01.11.01. http://hdl.handle.net/2078.1/285799

2. Bertrand, Aurélie; Bodart, Vincent; Clarr, Margaux; De Bundel, Florian; de Pierpont de Burnot, Charles; Guillet, Alain; Lachapelle, Nathan; Notte, Vincent; Van Keirsbilck, Leila. Perspectives économiques 2024-2025. In: Regards économiques, , no.185, p. 1-8 (2024). doi:10.14428/regardseco/2024.07.04.01. http://hdl.handle.net/2078.1/291573

3. Bertrand, Aurélie; Bodart, Vincent; De Bundel, Florian; Guillet, Alain; Lachapelle, Nathan; Pourtois, Mathilde; Sauvenier, Mathieu; Van Keirsbilck, Leïla. Perspectives économiques 2023-2024. In: Regards économiques, , no.180, p. 1-12 (2023). doi:10.14428/regardseco/2023.07.06.01. http://hdl.handle.net/2078.1/282159

4. Bodart, Vincent; Carpantier, Jean-François. Currency crises in emerging countries: The commodity factor. In: Journal of Commodity Markets, Vol. 30, p. 100287 (2023). doi:10.1016/j.jcomm.2022.100287. http://hdl.handle.net/2078.1/275422

5. Pensieroso, Luca; Restout, Romain. The Gold Standard and the international dimension of the Great Depression. In: Macroeconomic Dynamics, , p. 1-25 (2023). doi:10.1017/S1365100523000494 (Accepté/Sous presse). http://hdl.handle.net/2078.1/279508

6. Equiza-Goñi, Juan; Faraglia, Elisa; Oikonomou, Rigas. Union debt management. In: Journal of International Money and Finance : theoretical and empirical research in international economics and finance, Vol. 130, p. 102747 (2023). doi:10.1016/j.jimonfin.2022.102747. http://hdl.handle.net/2078.1/268177

7. Baurin, Arno; Bodart, Vincent; Courtoy, François; Lachapelle, Nathan; Pourtois, Mathilde; Sauvenier, Mathieu; Van Keirsbilck, Leila. Perspectives économiques 2023. In: Regards économiques, , no.176, p. 1-11 (2023). doi:10.14428/regardseco/2023.01.12.01. http://hdl.handle.net/2078.1/270715

8. Blanas, Sotiris; Oikonomou, Rigas. COVID-induced economic uncertainty, tasks and occupational demand. In: Labour Economics, Vol. 81, p. 102335 (2023). doi:10.1016/j.labeco.2023.102335. http://hdl.handle.net/2078.1/273291

9. Baurin, Arno; Bodart, Vincent; Courtoy, François; Dallemagne, Guillaume; Lachapelle, Nathan; Ounnas, Alexandre; Pourtois, Mathilde; Sauvenier, Mathieu. Perspectives économiques 2022. In: Regards économiques, , no.167, p. 1-12 (2022). doi:10.14428/regardseco/2022.01.14.01. http://hdl.handle.net/2078.1/270817

10. Giordani, Paolo E.; Mariani, Fabio. Unintended consequences: Can the rise of the educated class explain the revival of protectionism?. In: Journal of Economic Theory, Vol. 200, p. 105385 (2022). doi:10.1016/j.jet.2021.105385. http://hdl.handle.net/2078.1/254394

11. Attanasi, Gautier; Baurin, Arno; Bodart, Vincent; Courtoy, François; Dallemagne, Guillaume; Lachapelle, Nathan; Ounnas, Alexandre; Pourtois, Mathilde; Sauvenier, Mathieu. Perspectives économiques 2021. In: Regards économiques, , no.159, p. 1-12 (2021). doi:10.14428/regardseco/2021.01.15.01. http://hdl.handle.net/2078.1/270905

12. Bodart, Vincent; Ounnas, Alexandre. Prévision économique "en temps réel". In: Regards économiques, , no.164, p. 1-11 (2021). doi:10.14428/regardseco/2021.04.29.01. http://hdl.handle.net/2078.1/248102


Book Chapters


1. Clerc, Pierrick; De Vroey, Michel. Robert Lucas. In: The Palgrave Companion to Chicago Economics and Economists , Palgrave-MacMillan, 2023, 841-869. 978-3-031-01777-3. xxx xxx. doi:10.1007/978-3-031-01775-9_33. http://hdl.handle.net/2078.1/237086

Faculty Members

Portrait Bodart Vincent Bodart

Email: vincent.bodart@uclouvain.be

Website: https://perso.uclouvain.be/vincent.bodart/index.html
Portrait Mariani

Fabio Mariani

E-mail: fabio.mariani@uclouvain.be

 Website: https://sites.google.com/view/fabiomariani136/
Portrait Oikonomou

Rigas Oikonomou

 E-Mail: rigas.oikonomou@uclouvain.be

 website: https://sites.google.com/site/rigasoikonomou/home
Poprtrait Luca Pensieroso

Luca Pensieroso

E- mail luca.pensieroso@uclouvain.be

 

Sponsor Project Title IRES
Promoters		 IRES
Researcher		 Beginning End
National Bank of Belgium

Lack of coordination and debt management in a liquidity trap

 Rigas Oikonomou   2019 2021
Project Description:

Standard macroeconomic models of optimal debt management (DM) assume that interest rates do not hit the zero-lower bound. Yet since 2009 and until 2015, the US has been in a liquidity trap (LT) with interest rates stuck at zero. We argue that the standard insights of the DM literature, that governments should issue long term and nominal debt, do not apply in LTs. We construct macroeconomic models of DM under a variety of institutional setups (experimenting with both coordinated and uncoordinated monetary and fiscal policies) to investigate the optimal structure of debt in a LT. When coordination is lacking between fiscal and monetary authorities, pursuing their respective objectives may lead to conflicting DM strategies with implications for macroeconomic volatility and welfare. Hence, we look at Markov perfect equilibria where the two authorities choose optimal policies and also intervene in the secondary market to buy debt from private agents. In this sense, our framework is suitable to talk about the Federal Reserve’s QE program and also about the debt issuance policies of the Treasury in the Great recession.

 

Sponsor Project Title IRES promoters IRES Researcher Beginning End
National Bank of Belgium

Essays in quantitative macroeconomics

 Rigas Oikonomou      

 

Project Description:

This project is on quantitative macroeconomics, in particular on models of heterogeneous agents and on optimal fiscal policy models. A first paper analyzes the importance of the secondary market for durables, for the risk sharing opportunities in an incomplete financial market. A second paper is a DSGE model with optimal tax and debt policies applied to the US data.

 

 

You will find below our recent publications in macroeconomic and monetary economics.