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Professor Eddie Gerba

Professor Eddie Gerba

Visiting Senior Fellow

European Institute

Telephone
02079556296
Email
E.E.Gerba@lse.ac.uk
Room No
COW G.05
Connect with me

LinkedIn

Website

Languages
English, French, German, Swedish
Key Expertise
Macro-finance, Quantitative finance, Macroeconomics, Policy, Regulation

About me

Eddie Gerba (PhD) is a Visiting Senior Fellow at the European Institute and has previously held the position of Fellow in Macroeconomics at the same.

Together with Professor Paul De Grauwe, he is working on macroeconomic (business cycle) implications of financial and behavioural imperfections. Together, they are leading a global forum in behavioural macro and finance, and organise annual workshops on this topic. For the latest edition, please see here.  Eddie is also Head of PRA Research at Bank of England. He holds a number of other academic roles, including Distinguished Affiliate position at the CES Ifo Research Institute in Munich (Germany) and Executive Committee Member of the International Finance and Banking Society (IFABS). In 2024, he was a Visiting Professorial Fellow at the Department for Economic Analysis at University of Valencia (Spain).

Eddie has previously held advisory and research positions at various central banks, including the European Central Bank, Danmarks Nationalbank, Bank of Spain and Deutsche Bundesbank. He has also acted as an expert to the Economic and Monetary Affairs Committee of the European Parliament. Research Interests Eddie’s research interests lie in the fields of macroeconomics and quantitative finance. Of particular interest to his research are the interactions and linkages between financial markets and the macroeconomy. This includes topics such as credit cycles, financial intermediation theory, market-based finance, systemic risks, financial crises, risk management and business cycles. Method-wise, his interests and experience lie in DSGE-models, bounded rationality, computational methods, time-series econometrics, and derivative pricing models.            

In 2015, he published a book on 'Financial Cycles and Macroeconomic Stability: How Secular is the Great Recession?'. The book explores the secular stagnation phenomenon and investigates the role of US financial sector on macroeconomic cycles and growth. The book includes both a theoretical and an empirical analysis of the US macro-financial developments over the past 60 years. A full description of the book is available on Amazon.

Expertise Details

Eddie’s research interests lie at the intersection between finance and macroeconomics. This includes topics such as credit cycles; financial intermediation; market-based finance; systemic risks; financial crises; and macro-financial cycles.

Selected publications

PUBLICATIONS 

  1. Aikman, D., Cecchetti, S. G., & Gerba, E. (2024). ‘Central Bank Interventions During Episodes of Financial Market Dysfunction: Lessons for the Future’. Journal of Financial Services Research, 1-4. ISSN: 1573-0735.
  2. Gerba, E., Leiva-Leon, D.  and Rubio, M. (2024), ‘Inspecting Cross-Border Macro-Financial Mechanisms. Journal of International Money and Finance, 145, 103094. ISSN: 0261-5606. Previously published as DN Working Paper No. 153 and Banco de España Working Paper No. 2020. Published a previous draft with title: ‘Macro-Financial Interactions in a Changing World’.
  3. Cañon, C., Gerba, E., Pambira, A., & Stoja, E. (2024), ‘An unconventional FX tail risk story’, Journal of International Money and Finance, 148, 103152. ISSN: 0261-5606. Previously published in CES Ifo Working Paper No 10629. A SUERF policy brief was published under the same name here.
  4. Gerba E. and Katsoulis P. (2024), ‘The repo market under Basel III: effects of capital and liquidity regulations on market fragmentation”, International Journal of Finance and Economics, 29, 04. ISSN:1076-9307. Previously published as Bank of England Staff Working Paper. No. 954.
  5. Cokayne, G., Gerba, E., Kuchler, A., & Roulund, R. P. (2024). “Thank me later”: Why is (macro) prudence desirable?, Journal of Financial Stability, 71, 101227. ISSN: 1572-3089.
  6. Gerba, E. (2020), ‘Intangible Capital, Stock Markets and Investments: Implications for Macroeconomic stability’, Journal of Accounting and Finance, 20(05): 28-60. ISSN: 1467-629X(A previous version is available on: SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2347694)
  7. De Grauwe P. and Gerba E. (2018), ‘The role of cognitive limitations and heterogeneous expectations for aggregate production and credit cycles’, Journal of Economic Dynamics and Control (91): 206-236. ISSN 0165-1889 (A previous version is available on: FINMAP Working Paper Series No. 45, Kiel University, Kiel, 61pp. http://finmap-fp7.eu/files/wp/15WP45.pdf)
  8. Gerba, E. (2018), ‘What is the Fiscal Stress in the Euro Area? Evidence from a Joint Monetary-Fiscal Structural Model‘ Ensayos Sobre Politica Economica, 36(86): 21-47. ISSN 0120-4483
  9. De Grauwe P. and Gerba E. (2017), ‘Monetary Transmission Under Competing Corporate Finance Regimes’, Ensayos Sobre Politica Economica, 35(82): 78-100. ISSN 0120-4483
  10. Gerba E. (2015), ‘Financial Cycles and Macroeconomic Stability: How Secular is the Great Recession?’ LAP Lambert Academic Publishing, Saarbruecken, Germany. ISBN 978-3-659-68911-6
  11. Gerba E., and Schelkle W. (2013), ‘The Finance – Welfare State Nexus’ ACES cases 2013:1. The American Consortium on EU Studies (ACES), Washington, USA. 

PAPERS UNDER JOURNAL REVIEW 

  1. Gerba,. E. and Mencia, J. (2023), ‘Is more better? Effectiveness of capital buffers in taming the Spanish macro-financial cycles, R&R in Journal of Banking and Finance.
  2. Barakat, A., Duygun, M., Fiaschetti, M., Gerba, E., Han, T., Onali, E., Sabri, A., Tsionas, M., and Wang, H. (2023), ’Determinants of SME’s default on COVID and non-COVID loans: Evidence from the UK, R&R in British Journal of Management.
  3. Acosta-Smith J., Barunik J., Gerba E. and Katsoulis P., (2023), “Moderation or indulgence? Effects of bank distribution restrictions during stress” Bank of England Staff Working Paper. No. 1053. Submitted to Journal of Financial Intermediation.
  4. Gerba E., Leiva-Leon, D. and Poeschl, J. (2023), “Noisy Credit Cycles”, Published under the title ‘When credit cycles turn troublesome: The story of investor sentiment’, DN Working Paper No 194. A SUERF policy brief was published under the name “When do credit booms become troublesome?” here. Submitted to The Economic Journal.
  5. De Grauwe P., and Gerba, E. (2017), ‘Rationalising the Irrational: How relevant are beliefs for asset prices, credit and aggregate production?’, Banco de España Working Paper No. 1626 and CES Ifo Working Paper No. 5573: https://www.cesifo-group.de/ifoHome/publications/working-papers/CESifoWP/CESifoWPdetails?wp_id=19173893 Submitted to Journal of European Economic Association.
  6. Gerba, E. and Zochowski, D. (2017), ‘Knightian Uncertainty and Credit Cycles’ ECB Working Paper No. 2068. Submitted to Journal of Monetary Economics. 

WORKING PAPER SERIES 

  1. Belda, P., Gerba, E. and Rojas, L. (2024), “The Fiscal Channel of Quantitative Easing”, Forthcoming FRB Working Paper.
  2. Barunik, J., Cañon C, and Gerba E. (2024), "Good fences make good neighbours": How do individual vs collective (repo) dealer decisions shape mispricing in sovereign bonds?, Forthcoming Bank of England Working Paper.
  3. Aguilar, P., Fahr, S., Gerba, E. and Hurtado, S. (2020), ‘Quest for Robust Optimal Macroprudential Policy (ROMP)’,  Dynare Working Paper Series No. 53: https://www.dynare.org/wp-repo/dynarewp053.pdf (Feb 2020). (A previous version is available as Bank of Spain Working Paper Series No. 1916.)
  4. Gerba, E. and Hauzenberger, H. (2014), ‘Estimating US Fiscal and Monetary Interactions: From Volcker Chairmanship to the Great Recession’, University of Kent Working Paper Series No. 1303. (A previous version is also available on SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2347699 )
  5. Gerba E., and Pikoulakis E.V. (2014), ‘The importance of Education Quality for Growth and Development’ Available on SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2445882
  6. Gerba, E. (2014), ‘Have the US Macro-Financial Linkages Changed? The Balance Sheet Dimension’, LSE Research Online: http://eprints.lse.ac.uk/56407
  7. Gerba E., and Schelkle W. (2014), ‘Household Finance and the Welfare State: A Case Study of the United States 1980-2010’ London School of Economics and Political Science Working Paper: http://eprints.lse.ac.uk/56723
  8. Gerba, E., Pikoulakis, E.V. and Wisniewski, T.P. (2014), ‘Structural Models of the Wage Curve Estimated by Panel Data and Cross-Section Regressions’, Munich Personal RePec Archive (MPRA): http://mpra.ub.uni-muenchen.de/53975
  9. Gerba, E. and Pikoulakis, E.V. (2013) ‘Explaining Cross-Country Differences in Productivity: Is It Efficiency or Factor Endowments?’, SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2347688 

POLICY PAPERS (OPEN-SOURCE) 

  1. Financial Stability Committee (2020), ‘Framework to assess cross - border spillover effects of macroprudential policies.’ April 2020. Available on: https://www.ecb.europa.eu/pub/pdf/other/ecb.200428_framework_to_assess_cross-border_spillovers_of_macroprudential_policies~72576c7b4e.en.pdf
  2. Task Force on Cross-border Spillover Effects of Macroprudential Policy (chairs: Gerba, E., Kok, C., Reinhart, D.) (2020), ‘Cross-border spillover effects of macroprudential policies: a conceptual framework’ Occasional Paper No. 242. June 2020. Available on: https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op242~a67a606d02.en.pdf
  3. Gerba, E. and Macchiarelli, C. (2020), ‘Communication During Unconventional Times: The ECB’s Approach’, Monetary Dialogue 2020-02-06. Available on: https://www.europarl.europa.eu/cmsdata/195432/LSE_final_original.pdf
  4. Gerba, E. and Rubio, M. (2019), ‘Virtual Money: How Much do Cryptocurrency Alter the Fundamental Role of Money’, Monetary Dialogue 2019-12-02. Available on: https://www.europarl.europa.eu/cmsdata/190132/PE%20642.360%20LSE%20final%20publication-original.pdf
  5. Diessner, S., Gerba, E. and Macchiarelli, C. (2019), ‘The ECB’s unfinished business: Challenges ahead for EMU monetary and fiscal policy architecture’, Monetary Dialogue 2019-09-23. Available on: https://www.europarl.europa.eu/cmsdata/186941/LSE_FINAL-original.pdf
  6. (ESRB) Working Group on Real Estate Methodologies (2019), ‘Methodologies for the Assessment of Real Estate Vulnerabilities and Macroprudential Policies: Residential Real Estate’, edited by Zollino, F. et al. Available on: https://www.esrb.europa.eu/pub/pdf/reports/esrb.report190923_methodologies_assessment_vulnerabilities_macroprudential_policies~7826295681.en.pdf
  7. Gerba, E. (2019), ‘EURO project, 20 years on: A critical assessment and the road ahead’ European Parliament Monetary Dialogue 2019-01-23. Available on: http://www.europarl.europa.eu/cmsdata/159708/LSE_final%20publication.pdf
  8. Gerba, E. (2018), ‘Monetary Policy Implications from transitory vs. permanently subdued growth prospects (secular stagnation)’ European Parliament Monetary Dialogue 2018-11-26. Available on: http://www.europarl.europa.eu/cmsdata/157016/LSE%20final%20publication.pdf
  9. (ESRB) Expert Group on Structural Buffers, (2018), ‘Final Report on Structural Capital Buffers’, European Systemic Risk Board, edited by Korbmacher, S. et al. 27 February, 2018: http://www.esrb.europa.eu/news/pr/date/2018/html/esrb.pr180227.en.html  
  10. Gerba, E. and Macchiarelli, C. (2016), ‘Policy Options and Risks of an Extension of the ECB’s Quantitative Easing Programme: An Analysis’ European Parliament Monetary Dialogue 2016-02-15. Available on:https://www.europarl.europa.eu/cmsdata/105470/IPOL_IDA(2016)569994_EN.pdf Commented on:https://www.poundsterlinglive.com/eur/3721-ten-policy-measures-the-ecb-might-adopt-in-march
  11. Gerba, E. and Macchiarelli, C. (2015), ‘Is Globalization Reducing the Possibility of Central Banks to Control Inflation?’, European Parliament Monetary Dialogue 2015-11-12. Available on: https://www.europarl.europa.eu/cmsdata/105466/IPOL_IDA(2015)563476_EN.pdf
  12. Gerba, E. and Macchiarelli, C. (2015), ‘Interaction Between Monetary Policy and Bank Regulation: Theory and European Practice’, LSE Systemic Risk Centre Special Paper Series No. 10: http://eprints.lse.ac.uk/68344/1/sp-10.pdf-and Also available on European Parliament Monetary Dialogue 2015-06-15:https://www.europarl.europa.eu/cmsdata/105462/IPOL_IDA(2015)563458_EN.pdf
  13. Gerba, E. and Macchiarelli, C. (2015), ‘Sovereign Bond Purchases and Risk Sharing: myth and Reality of European QE‘, LSE Systemic Risk Centre Special Paper Series No. 9: https://www.systemicrisk.ac.uk/sites/default/files/publications/sp-9.pdf-and. Also available on European Parliament Monetary Dialogue 2015-06-15: https://www.europarl.europa.eu/RegData/etudes/IDAN/2015/587288/IPOL_IDA(2015)587288_EN.pdf
  14. Gerba, E. and Macchiarelli, C. (2015), ‘Financial (In)stability, low interest rates, and (un)conventional monetary policy: Potential Risks and Policy Measures’ European Parliament Monetary Dialogue 2015-03-23. Available on: https://www.europarl.europa.eu/cmsdata/105461/IPOL_IDA(2015)587290_EN.pdf 

RESEARCH-RELATED ACTIVITIES 

CONSULTATIONS AND INTERVIEWS 

  • Interviewed on the Impact from COVID on the British and European economies by the Argentinian National Radio, ‘Corresponsales en Linea, Radio Ciudad’ (in Spanish), 20 September, 2020
  • Interviewed on Macroprudential Policy and Sustainable Finance, ‘EAFIT and Medellin journalists, (in Spanish), 05 Dec, 2019.
  • Interviewed on the Impacts from a no-deal Brexit and the wider effects for the financial industry by the Argentinian National Radio, ‘Corresponsales en Linea, Radio Ciudad’ (in Spanish), 01 July, 2018
  • Interviewed on the Ongoing Negotiations of Brexit and its Impact on UK by the Argentinian National Radio, ‘Corresponsales en Linea, Radio Ciudad’ (in Spanish), 23 June, 2017
  • Interviewed on the Economic Consequences of a Brexit by the Argentinian National Radio, ‘Corresponsales en Linea, Radio Ciudad’ (in Spanish), 20 February, 2016

https://www.youtube.com/watch?v=G2VWTgfzVfI&feature=youtu.be

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