Macro-finance

This subtheme develops theoretical and policy-oriented approaches to monetary production economies, market power and inequality, as well as firm dynamics and labour markets. 

1.  Stock-flow consistent modelling and monetary circuit theory. Research in this area applies stock-flow consistent models and monetary circuit theory to analyse financial systems, macroeconomic policy, fiscal and monetary interactions, financialisation, and long-run macro-financial dynamics, including the growing role of non-bank financial intermediaries and shadow banking (Giuseppe Fontana). 

2.  Corporate sector heterogeneity and macroeconomic trends. Research disaggregates macroeconomic developments in the corporate sector—such as declining investment and rising profit shares—using agent-based models and firm-level data to understand corporate concentration and rising inequality (Karsten Kohler, Lea Steininger). 

3.  Firms, labour markets and heterogeneous adjustment. Empirical research examines how firms and labour markets respond differently to macroeconomic conditions, including work on labour shortages, wage dynamics, market power and firm-level responses to macroeconomic shocks (Antonio Rodriguez Gil, Esra Ugurlu, Lea Steininger). See also our Labour, Behavioural Economics and Wellbeing theme.

This subtheme examines how international financial systems, capital flows and external shocks shape macroeconomic dynamics and financial stability. 

1.  Subordinate financialisation and global financial hierarchies. Work in this area examines how economies are integrated into global financial markets in asymmetric ways, analysing the risks this creates for financial stability (Gary Dymski, Annina Kaltenbrunner, Bianca Orsi). 

2. Capital flows and exchange rate dynamics. Empirical research explores how international portfolio flows and institutional investors affect exchange rates and financial volatility, particularly in emerging markets (Annina Kaltenbrunner, Karsten Kohler). 

3.  Foreign direct investment, oil shocks, financial cycles, and financial crises. Research analyses the macroeconomic impact of foreign investment flows, oil price shocks, financial cycles and crises (Gary Dymski, Muhammad Ali Nasir, Antonio Rodriguez-Gil).   

This subtheme unpacks how monetary, financial and political institutions—as well as policy frameworks—shape macroeconomic outcomes. For our research on Ecological Macroeconomics, please see our Development, Trade and Environment theme. 

1.  Central banking, institutions, discourse, and central bank digital currencies. Research examines how institutional structures and communication strategies shape monetary policy and its legitimacy, the role of discourse and deliberative democracy in monetary governance, central banking in open economies as well as central bank digital currencies (Fazil Acar, Muhammad Ali Nasir, Stefan Kesting, Bianca Orsi, Lea Steininger). 

2. Monetary theory, endogenous money and macroeconomic policy. Research in this area examines the monetary theory of production, endogenous money, central banking and monetary policy, fiscal policy, and the macroeconomic implications of monetary institutions and policy regimes (Giuseppe Fontana, Lea Steininger). 

3.  Credit allocation, financial regulation and macroeconomic outcomes. Work in this area analyses how institutional arrangements in credit markets—such as credit controls, banking regulation and lending behaviour—affect macroeconomic dynamics and financial stability (Muhammad Ali Nasir, Esra Ugurlu). 

4.  Exchange rate regimes and the political economy of macroeconomic policy. Research investigates how political economy factors and societal preferences shape exchange rate and anti-inflationary policies (Muhammad Ali Nasir, Esra Ugurlu).