During the course of 2017, CEBRA is to launch its Research Program on the topic of “Monetary Policy and Macro Finance” (MPMF). The MPMF research program covers topics ranging from classical monetary models to new macroeconomic models with a financial sector, focusing on implications of central bank policies and financial regulation. It addresses recent theoretical and empirical contributions from academic and policy researchers related to the link between finance and the real economy, the role of the financial sector and monetary policy. This includes researchers from the fields of macroeconomic theory, monetary economics, macroeconometrics, finance, banking and economic history.
The second goal of Macroeconomics is stability. An unstable market can lead to large or sudden changes in production, employment and prices. High levels of fluctuation in turn can create unpredictable inflation patterns. A Company would strive to keep production consistent with market demand and develop plans to deal with shocks to the system. In this way employment can remain consistent and prices will not have extreme swings up and down. While production will remain as stable as possible, it should have the opportunity to increase over time.