New Micro-foundations for Macroeconomics

Radcliffe House, University of Warwick
10-11 July 2009

As in the last two years, the World Economy and Finance Research Programme is to hold a workshop in July at the University of Warwick. This year the theme is New Micro-foundations for Macroeconomics.

The focus will not be on the details of the present crisis market by market, but rather on the analytical foundations of macroeconomics. The dominant paradigm has been widely criticised for its failure to connect with many features of recent events. How does one incorporate credit market imperfections in general equilibrium framework? Is it by extending DSGE / New Keynesian macroeconomics, as Gali proposes? Or shifting from the representative agent assumption and introducing borrowing constraints, as Kioytaki and Moore (2008) do? Can asset prices reflect fundamentals in the presence of distorted incentives? These are among the issues to be considered.

As well as the papers being presented, the workshop includes two visits to nearby Stratford-upon-Avon to see Shakespeare's (Thursday 9 July) and (Saturday 11 July). There is also a conference dinner which will take place at Radcliffe House on Friday 10 July at 7.30pm, which includes a speech by the LSE's Willem Buiter.

*** Registration for the workshop has now closed ***