Overview
For decades there has been growing dissatisfaction within both the economics and policy communities on the performance of macroeconomic models. Recent generations of macro models have struggled in the face of major public policy challenges ranging from the financial crises, to growing economic inequality, inflation, and climate change.
INET Oxford scholars co-led a major assessment of the current state of macroeconomics and promising directions for future work that resulted in two special issues of the Oxford Review of Economic Policy. Institute researchers are also engaged in efforts to apply novel methods to macroeconomic issues, including advanced econometric methods to improve forecasting, bottom-up agent-based models that utilize micro data on households and firms, and network models of supply chains and labour markets. In addition to new insights on macroeconomic theory, this work is leading to collaborations with policymakers to apply these ideas and methods to a broad range of fiscal, monetary, and regulatory policy issues.
