Dr Eddie Gerba

Dr Eddie Gerba

Visiting Fellow

European Institute

020 7955 6296
Room No
COW G.05
English, French, German, Swedish
Key Expertise
Credit and Banking; Macroeconomics; Risk Modeling

About me

Eddie Gerba (PhD) is a Visiting 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. He has a background in both macroeconomics and quantitative finance. In addition, he works as Expert to the Economic and Monetary Affairs Committee (European Parliament) and holds a Distinguished Affiliate position at the CES Ifo Research Institute in Munich. His previous positions include Senior Research Economist (Bank of Spain) and Research Consultant (ECB).

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, 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 fo the book is available on Amazon

His recent non-technical publications to the European Parliament include an in-depth analysis of permanently subdued growth prospects in the Euro Area and the US (see link) and a comprehensive critical assessment of the Euro project 20 years after its introduction (see link). Short blog inserts are also available on LSE EURPP blog site (see page) and LSE USAPP blog site (see page).



English, Spanish, French, German, Swedish, Danish, Serbo-Croat, Catalan

Regions and Countries

OECD, USA, Euro Area, UK, Spain

Media Experience 

TV, Radio, newspapers, blogs

View Dr Gerba's CV PDF


Expertise Details

Credit and Banking; Macroeconomics; Systemic Risk; Financial Stability; Macroprudential Policy; Monetary Policy; Risk Modeling; Financial Markets

Selected publications

Academic Papers

De Grauwe P. and Gerba E. (2018), ‘The role of cognitive limitations and heterogeneous expectations for aggregate production and credit cycles’ In print in Journal of Economic Dynamics and Control https://www.sciencedirect.com/science/article/pii/S0165188918300897?via%3Dihub (A previous version is available on: FINMAP Working Paper Series No. 45,  Kiel University,  Kiel,  61pp. http://finmap-fp7.eu/files/wp/15WP45.pdf)

Gerba, E. (2018), ‘What is the Fiscal Stress in the Euro Area? Evidence from a Joint Monetary-Fiscal Structural Model‘ Forthcoming in Ensayos Sobre Politica Economica.

de Grauwe, Paul and Gerba, Eddie (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

de Grauwe, Paul and Gerba, Eddie (2017) Monetary transmission under competing corporate finance regimes = Transmisión monetaria bajo regímenes alternativos de finanzas corporativas Ensayos Sobre Política Económica, 35 (82). 78-100. ISSN 0120-4483

Gerba, Eddie and Zochowski Dawid (2017) "Knightian Uncertainty and Credit Cycles" ECB Working Paper, May 2017, Frankfurt am Main, Germany

Gerba, Eddie (2015) Financial cycles and macroeconomic stability: how secular is the Great Recession? LAP Lambert Academic Publishing, Saarbruecken, Germany. ISBN 9783659689116

de Grauwe, Paul and Gerba, Eddie (2015) Stock market cycles and supply side dynamics: two worlds, one vision Documentos de trabajo , Banco de España, Madrid, Spain.

Gerba, Eddie and Pikoulakis, Emmanuel V. and Wisniewski, Tomasz Piotr (2014) Structural models of the wage curve estimated by panel data and cross-section regressions MPRA paper, 53975. Munich Personal RePEc Archive (MPRA), Munich, Germany.

Gerba, Eddie and Schelkle, Waltraud (2014) Household finance and the welfare state: a case study of the United States, 1980-­2010 The London School of Economics and Political Science, London, UK.

Gerba, Eddie (2013) Reconnecting investment to stock markets: the role of corporate net worth evaluation Working papers , Social Science Research Network (SSRN) , Rochester, USA.

Gerba, Eddie and Schelkle, Waltraud (2013) The finance-welfare state nexus ACES cases, 2013.1. The American Consortium on EU Studies (ACES), Washington, USA.

Policy Papers

(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 

“Assessing ECB Quantitative Easing: One Year On”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2016-01, June 2016

“Policy options and risks of an extension of the ECB’s quantitative easing programme: An analysis”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2016-01, Feb 2016

“Is globalization reducing the ability of central banks to control inflation?”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2015-07, Nov 2015

“Interaction between monetary policy and bank regulation: Theory and European practice”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2015-07, Sep 2015 (also LSE Systemic Risk Centre Special Paper no. 10)

“Sovereign Bond Purchases and Risk Sharing: Myth and Reality of the European QE”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2015-02, June 2015  (also LSE Systemic Risk Centre Special Paper no. 9)

“Financial (in)stability low interest rates and (un)conventional monetary policy”, with C. Macchiarelli, Monetary Policy Dialogue, note to the European Parliament, IP/A/ECON/2015-01, Mar 2015

Public Debates

He is also actively contributing to the USAPP blog and EUROPP blog. His latest posts can be accessed here:


http://blogs.lse.ac.uk/europpblog/2016/03/10/quantitative-easing-to-deal-with-the-root-of-the-problem-the-ecb-should-tackle-non-performing-loans/ (with C. Macchiarelli)



http://blogs.lse.ac.uk/usappblog/2014/05/07/spending-rises-are-more-effective-in-expanding-the-economy-by-as-much-as-20-percent-compared-to-tax-cuts/ (with K. Hauzenberger)