LBS academic to study the effects of monetary policy and regulation on financial conditions and the macro economy
Paolo Surico, Professor of Economics at London Business School (LBS), has been awarded a €1,135,940 (nearly £1 million) consolidator grant by the European Research Council (ERC) to study business cycles.
The research will explore the effects of monetary policy and macro-prudential regulation on financial conditions relating to redistributing money across households and firms.
This latest grant, given over a four-year period, is Professor Surico’s third from the ERC’s Consolidator Grant scheme, which funded 13% of the 2,538 research proposals it received. Professor Surico has, in total, been awarded more than £3 million of research funding by the ERC and the British Academy.
The ERC champions scientific excellence by supporting scientists, scholars and engineers to be adventurous and take risks with their research.
“It’s an honour to be offered further funding to continue my research through another award from this prestigious and highly competitive scheme,” Professor Surico said.
“Exploring the distributional effects of macroeconomic
policies in the aggregate economy is a huge challenge. I’m thrilled with the
opportunity given to me by the ERC and LBS to uncover this relatively
overlooked aspect of macroeconomics.”
Professor Surico’s research explores the aggregate effects and distributional impact of large public programme interventions such as government spending and tax reforms, monetary policy and macro-prudential regulation. He also looks at the role that household and business debt has on the transmission mechanism (how monetary policy decisions affect asset prices and general economic conditions).