Money & Finance
The department Money & Finance is working on the macroeconomic analysis of financial institutions to understand the transmission and potential amplification of monetary policy shocks due to inherent systemic risks. The macroeconomic perspective is combined with microeconomic structural information (e.g. business models of banks) in the medium term to obtain a better understanding of cause-and-effect structures. Thus, quantitative models of the financial market are developed to assess the welfare implications of shocks (e.g. persistent low-interest rates) and economic policy interventions (e.g. unconventional monetary policy).