Behavioural Macro and Finance

Workshop on Behavioural Macro and Finance

Friday 19 January 2024, 8:30am - 6:00pm

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.


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)