Jaume Ventura talks about the objectives, challenges, and potential impact of his ERC Advanced Grant Project.
Manuel García-Santana, Enrique Moral-Betino, Josep Pijoan-Mas and Roberto Ramos show that negative TFP growth was caused by the increase in within-industry misallocation of production factors.
The idea of financing a fiscal stimulus with money creation has long been a taboo and disregarded as a policy option. But is this justified? Jordi Galí investigates the effects of a government engaging in just such a stimulus as compared with a debt-financed stimulus.
Barcelona GSE research on VoxEU.org by Alberto Martín and Jaume Ventura
There is a widespread view among macroeconomists that fluctuations in collateral are an important driver of credit booms and busts. This column distinguishes between ‘fundamental’ collateral – backed by expectations of future profits – and ‘bubbly’ collateral – backed by expectations of future credit. Markets are generically unable to provide the optimal amount of bubbly collateral, which creates a natural role for stabilisation policies. A lender of last resort with the ability to tax and subsidise credit can design a ‘leaning against the wind’ policy that replicates the ‘optimal’ bubble allocation.
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