Gross credit flows, credit reallocation, and the macroeconomy. This project aims to construct measures of credit reallocation from regulatory bank-level data for Australia and other countries. The project intends to develop empirical models able to evaluate the role of credit reallocation on aggregate output and a theoretical model with search and match frictions to evaluate quantitatively the role of bank credit in explaining macroeconomic outcomes. The project expects to provide significant be ....Gross credit flows, credit reallocation, and the macroeconomy. This project aims to construct measures of credit reallocation from regulatory bank-level data for Australia and other countries. The project intends to develop empirical models able to evaluate the role of credit reallocation on aggregate output and a theoretical model with search and match frictions to evaluate quantitatively the role of bank credit in explaining macroeconomic outcomes. The project expects to provide significant benefits for policymakers for assessing the interplay between monetary and credit policy, formulating macroeconomic and macro prudential policies, and shedding light on the causes of productivity dynamics in Australia, boosting its comparative advantage.Read moreRead less
Macroeconomic Consequences of Macroprudential Policy. This project aims to investigate the macroeconomic consequences of macroprudential policies and to provide robust, empirically-based advice to policy-makers about how they should be conducted. The global financial crisis motivated many nations to introduce new policies – known as macroprudential policies – with the explicit goal of maintaining financial stability. Important components of the project include estimation of a multisector small o ....Macroeconomic Consequences of Macroprudential Policy. This project aims to investigate the macroeconomic consequences of macroprudential policies and to provide robust, empirically-based advice to policy-makers about how they should be conducted. The global financial crisis motivated many nations to introduce new policies – known as macroprudential policies – with the explicit goal of maintaining financial stability. Important components of the project include estimation of a multisector small open economy model with interactions between the financial sector and the rest of the macroeconomy and development of new methods to evaluate these policies. Assessing the sensitivity of the performance of macroprudential policies to variations in key dimensions of the model is another important aspect.Read moreRead less
The Macroeconomic Effects of Global Uncertainty. This project aims to estimate the first global uncertainty index to enable Australian policymakers to design policies to efficiently manage global uncertainty shocks and limit the recessionary effects of such shocks. Uncertainty is a crucial driver of household and business consumption and investment decisions and, therefore, countries' business cycles. A global uncertainty index would aim to identify the role of global uncertainty as a driver of ....The Macroeconomic Effects of Global Uncertainty. This project aims to estimate the first global uncertainty index to enable Australian policymakers to design policies to efficiently manage global uncertainty shocks and limit the recessionary effects of such shocks. Uncertainty is a crucial driver of household and business consumption and investment decisions and, therefore, countries' business cycles. A global uncertainty index would aim to identify the role of global uncertainty as a driver of Australia's business cycle fluctuations, to understand if this role has become more relevant in recent historical periods due to globalisation, and to understand if the effects of fluctuations in global uncertainty have been more severe in economic recessions. The intended outcome of the project is to provide policy-makers with key inputs to design policies able to limit the severity of recessions and lift Australia's growth.Read moreRead less