Macrofinance, crises and regulation

This platform explores the interaction between the financial sector and the real economy with a focus on the Swedish record, sometimes going back into Swedish financial, banking, public finance and monetary history. Much of our work on issues of financial stability, financial crises and financial regulation will be based on “macrofinance”, a field combining financial economics, monetary theory and macroeconomics. The political economy of financial and economic crises will be covered as well as the role of the financial system in framing the Swedish model. In addition, work on financial aspects of demography, pensions and savings behavior will be initiated during the period. This platform also includes “corporate finance” as an important pillar, exploring how macroeconomic fluctuations contribute to crises by the way they are dealt with at the corporate level. This part links corporate excessive risk-taking and lack of transparency in response to macroeconomic fluctuations to real economic consequences and growth.

Examples of ongoing projects:

  • Financial crises in Sweden
  • Financial crises and the design of macroeconomic policies
  • Macroprudential financial regulation after the global financial crisis of 2008-2010
  • Transparency and economic growth
  • Macroeconomic fluctuations and corporate risk management
  • Credit risk and corporate restructuring

Principal Investigators: Lars Jonung and Lars Oxelheim