Economics serving society


The current macroeconomic environment is associated with a number of risk factors such as unconventional monetary policy and its normalization, very high levels of private and public indebtedness, political uncertainty, and the possibility of infrequent but major shocks. This situation poses new challenges for decision-makers dealing with macroeconomic risk and for research.

Under the scientific leadership of Gilles Saint-Paul (PSE, ENS) and the executive leadership of Axelle Ferriere (PSE, CNRS), the Macroeconomic Risk Chair aims to investigate these issues, and more broadly to promote the development and dissemination of macroeconomic risk research.

To contribute to this goal, a newsletter is now proposed, summarizing the research performed and promoted within the chair.

Contact: Samuel Chich - samuel.chich at

Newsletter #11, February 2023

> Optimal Monetary Policy when r*<0,
By Roberto Billi (Sveriges Riksbank), Jordi Galí (CREI, UPF, BSE) and Anton Nakov (European Central Bank)

> Gazing at r*: A Hysteresis Perspective,
By Paul Beaudry (Bank of Canada), Katsiaryna Kartashova (Bank of Canada) and Cesaire Meh (Bank of Canada)

> The Inflationary Effects of Sectoral Reallocation,
By Francesco Ferrante (Federal Reserve Board), Sebastian Graves (Federal Reserve Board) and Matteo Iacoviello (Federal Reserve Board)

> Essential Business Cycles,
By Michele Andreolli (LBS), Natalie Rickard (LBS) and Paolo Surico (LBS)

> Subjective Housing Price Expectations, Falling Natural Rates and the Optimal Inflation Target,
An interview with Klaus Adam (University of Mannheim)

> Efficient Allocations under Ambiguous Model Uncertainty,
By Chiaki Hara (Kyoto University), Sujoy Mukerji (Queen Mary University of London), Frank Riedel (University of Bielefeld) and Jean-Marc Tallon (Paris School of Economics)

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Newsletter #10, October 2022

> Data and the changing economics of knowledge production
An interview with with Laura Veldkamp (Columbia Business School)

> Exchange rate policy and firm heterogeneity,
By Masashige Hamano (Waseda University) and Francesco Pappadà (Paris School of Economics and Banque de France)

> The Curious Incidence of Monetary Policy Across the Income Distribution,
By Tobias Broer (PSE, IIES, Stockholm University), John Kramer (IIES, Stockholm University) and Kurt Mitman (IIES, Stockholm University, CEPR and IZA)

> Round Table: Why is the Euro Falling Relative to the Dollar?
With Klaus Adam (University of Mannheim), Giancarlo Corsetti (EUI) and Martín Uribe (Columbia University)
Moderated by Gilles Saint-Paul (PSE, ENS-PSL)

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Newsletter #9, May 2022

> 2021 Macroeconomic Risk Chair Annual Lecture:

  • Is an inflation disaster around the corner? by Ricardo Reis (London School of Economics and Political Science)
  • Interview: Ricardo Reis (London School of Economics and Political Science)

> 2021 Junior Research Prize:

  • Herding Through Booms and Busts, by Edouard Schaal (CREI, ICREA, UPF, BGSE and CEPR) and Mathieu Taschereau-Dumouchel (Cornell University)
  • Interview: Edouard Schaal (CREI, ICREA, UPF, BGSE and CEPR) and Mathieu Taschereau-Dumouchel (Cornell University)
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Newsletter #8, January 2022

> Can Democracy Survive a Concentrated Economy ?
An interview with Luigi Zingales (The University of Chicago Booth School of Business)

> A Model of Post-2008 Monetary Policy, by Olivier Loisel (CREST, ENSAE)

> A Model of Credit, Money, Interest and Prices, by Saki Bigio (UCLA, NBER)

> Falling Interest Rates and Credit Misallocation: Lessons from General Equilibrium, by Alberto Martin (CREi, UPF, Barcelona GSE)

> The Effect of Macroeconomic Uncertainty on Household Spending, by Olivier Coibion (University of Texas at Austin)

> Zero Lower Bound on Inflation Expectations, by Dmitriy Sergeyev (Bocconi University)

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Newsletter #7, September 2021

> Simple Rules for a Complex World with Artificial Intelligence
An interview with Jesús Fernandez-Villaverde (University of Pennsylvania)

> Collateralization and Asset Price Bubbles when Investors Disagree about Risk,
by Tobias Broer (PSE, IIES and CEPR) and Afroditi Kero (Neapolis University Pafos)

> Sovereign Default and Imperfect Tax Enforcement,
by Francesco Pappadà (Banque de France, PSE Visitor) and Yanos Zylberberg (University of Bristol, CESifo and the Alan Turing Institute)

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Newsletter #6, December 2020

> State Dependent Effects of Monetary Policy: The Refinancing Channel
An interview with Martin Eichenbaum (Northwestern University)

> The Great Lockdown and the Big Stimulus: Tracing the Pandemic Possibility Frontier for the U.S.,
by Benjamin Moll (London School of Economics)

> Housing Tenure and Household Debt: Life-Cycle Dynamics During a Boom and Bust,
by Clodomiro Ferreira (Bank of Spain)

> Understanding Consumer Default Risk, by Stefania Albanesi (University of Pittsburgh)

> Macroeconomic Effects of Debt Relief: Consumer Bankruptcy Protections in the Great Recession,
by Adrien Auclert (Stanford University)

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Newsletter #5, September 2020

> Roundtable: Macroeconomic consequences of the Coronavirus crisis

> 2020 Junior Research Prize: Ludwig Straub (Harvard University) and Robert Ulbricht (Boston College)

> Financial Cycles with Heterogeneous Intermediaries, by Nuno Coimbra (PSE) and Hélène Rey (London Business School, CEPR and NBER)

> Waiting for the Prince Charming: Fixed-Term Contracts as Stopgaps, by Normann Rion (PSE, ENS-PSL)

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Newsletter #4, April 2020

> Why do Stock Markets Jump (and Trump’s impact on Markets)?
An Interview with Nicholas Bloom (Stanford University)

> Risks posed by China to the global economy

  • The Changing Landscape of China’s Financial System, by Yu Zheng (Queen Mary)
  • Trade Networks and Firm Value: Evidence from the 2018 US China Trade War, by Yi Huang (IIES Geneva)
  • Understanding China’s Debt Risk, by Wei Yao (Société Générale)
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Newsletter #3, December 2019

> Risk-Centric Macroeconomics: An Interview with Ricardo Caballero (Massachusetts Institute of Technology)

> Strategic Default in Financial Networks, by Nizar Allouch (University of Kent)

> The Transmission of Shocks in Endogenous Financial Networks: A Structural Approach, by Romain Rancière (University of Southern California)

> Understanding Uncertainty Shocks and the Role of Black Swans, by Anna Orlik (Federal Reserve Board)

> Panel: Long-Term Risks for the World Economy

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Newsletter #2, June 2019

> 2019 Young Researcher Award

> Intermediation and Voluntary Exposure to Counterparty Risk, by Maryam Farboodi (MIT Sloan School of Management)

> Trading Ambiguity: A Tale of Two Heterogeneities, by Jean-Marc Tallon (PSE, CNRS)

> From Microeconomic Favoritism to Macroeconomic Populism, by Gilles Saint-Paul (PSE, ENS)

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Newsletter #1, December 2018

> Why a SCOR-PSE Chair on macroeconomic risk? By Gilles Saint-Paul (PSE, ENS)

> Highlights from the inaugural conference

  • Does Uncertainty Reduce Growth?
  • Learning, Confidence, and Business Cycles
  • Interest Rate Management in Uncertain Times
  • The Tail that Keeps the Riskless Rate Low
  • Policy panel: Are we at risk of a new financial crisis?

> Disaster risk in macroeconomics and finance, by Xavier Gabaix (Harvard)

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