RESEARCH
Research at CFI focuses on the analysis of monetary and fiscal policies within models that represent the whole economy with several markets, such as goods markets, labor markets, financial markets and housing markets. These models – referred to as general equilibrium macroeconomic models – are fundamental to capture the interaction among different markets, the propagation of shocks, the effect of macroeconomic policies and their welfare implications. Such interactions are the reason why an unanticipated event in one market may trigger a crisis in another market and affect the overall economy.General equilibrium macroeconomic models are micro-founded in the sense that they are derived from the analysis of the behavior of individual agents, such as households and firms, so that they are completely consistent with the principles of microeconomics. Our general equilibrium macroeconomic models are typically complex and require numerical solutions.
