Workshop on Behavioural Macro and Finance

The Bank of England and the LSE European Institute co-hosted a workshop on Behavioural Macro and Finance on Friday 19 January 2024. The aim of the workshop was to provide a platform for researchers to present and discuss their latest research on the intersection of macroeconomic & financial theory and behavioural economics. The programme featured eight sessions, each dedicated to a research paper addressing the theme.

The workshop was in hybrid format and was held in the LSE Shaw Library for in-person attendees.

Papers and slides presented in the workshop can be found below.

Programme

8:30 – 8:55	Registration & refreshments
8:55 – 9:00	Opening remarks by Paul De Grauwe (LSE) & Eddie Gerba (Bank of England)
9:00 – 9:55	Paper 1: Learning about bond prices (Paper to be published) Speaker: Albert Marcet (Centre de Recerca en Economia Internacional) - Slides Discussant: Tomohiro Hirano (Royal Holloway London) - Slides
9:55 – 10:50	Paper 2: Reinforcement learning for household finance: designing policy via responsiveness Speaker: Lilia Maliar (Stanford University) - Slides Discussant: Ed Hill (Bank of England) - Slides
10:50 – 11:10	Comfort break
11:10 – 12:05	Paper 3: Managing overreaction during a run Speaker: Caio Machado (Pontificia Universidad Católica de Chile) - Slides Discussant: Margaret Davenport (Kings College London) - Slides
12:05 – 12:50	Lunch break
12:50 – 13:45	Paper 4: Long term expectations and aggregate fluctuations Speaker: Pedro Bordalo (University of Oxford) - Slides Discussant: Iryna Kaminska (Bank of England) - Slides
13:45 – 14:40	Paper 5: Kalman filter learning versus bounded rationality in a heterogeneous agent NK model Speaker: Paul Levine (University of Surrey) - Slides Discussant: Yifan Zhang (University of Oxford) - Slides
14:40 – 15:00	Comfort break with refreshments
15:00 – 15:55	Paper 6: Fiscal multipliers, public debt, and government credibility in a behavioural macro model Speaker: Amelie Barbier & Thierry Betti (University of Strasbourg) - Slides Discussant: Paul De Grauwe (LSE) - Slides
15:55 – 16:50	Paper 7: Seemingly irresponsible but welfare improving fiscal policy at lower bound Speaker: Roberto Billi (Sveriges Riksbank) - Slides Discussant: Johannes Fischer (Bank of England) - Slides
16:50 – 17:45	Paper 8: Firm expectations and news: micro v macro Speaker: Gernot Mueller (University of Tuebingen) - Slides Discussant: Joel Suss (Bank of England) - Slides to be published
18:00 – 19:30	Drinks reception

Organizing Committee

Jenny Chan (Bank of England)
Paul De Grauwe (LSE European Institute)
Francesca Diluiso (Bank of England)
Eddie Gerba (Bank of England)
Joel Suss (Bank of England)