Centre for Economic Performance (CEP)

Research Programmes:

Macro Programme

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Programme Overview

[photo: Francesco CASELLI] The programme director is Professor Francesco Caselli.
Room: 32L 1.21
Tel: +44 (0)20 7955 7498,
The macro programme focuses on the aggregate economic performance of countries and regions. It therefore addresses a wide variety of issues, ranging from the long-run capacity of economies to achieve and sustain high living standards, to the day-to-day conduct of monetary and fiscal policy to avoid excessive volatility in the short run.

Issues of long-run performance where CEP macro researchers are particularly active include: the study of the determinants of cross-country income differences; the interplay of political and economic factors in determining the long-run success of a country; the impact of natural-resource abundance on a country's development path; the role of institutional barriers to entrepreneurship in retarding growth; the sources of high income instability in developing countries; the role of R&D and investment in industry and aggregate growth.

In the area of macroeconomic stabilization policy and business cycles the program researchers have recently investigated: how to conduct monetary policy when the central bank has imperfect information; the mechanisms through which monetary policy affect inflation and economic activity; the role of verbal communication in monetary policy; the consequences of committee design in the decisions of monetary policy committees.

One of the great strengths of the programme is in the study of labour market performance. This work has now been rewarded with the Nobel Prize in Economics for program member (and former program director) Chris Pissarides. Our work in this area continues to tackle long-standing questions on the effect of productivity on employment and unemployment; and the role of tax and welfare policy, as well as the degree of competition in product markets, on labour-market performance.

The program also has an active research agenda in the area of international macroeconomics, including work that addresses causes and possible remedies for the tendency of emerging economies to experience frequent external crises.

The CEP Macro programme focuses on longer-run growth issues, but we also examine booms & busts in more detail with the Centre for Macroeconomics

Key research areas:

Past Special Initiatives

Below are links to past special initiatives of the CEP. They contain slides from seminars and associated publications prepared by members of the CEP, organized around short seminar series investigating current events.