National Bureau of Economic Research, Inc.
To stimulate new academic research on global aspects of the financial crisis and "Great Recession"
Surprisingly few ideas from the field of international economics have turned out to be useful either in the run-up to the recent financial upheaval or in its aftermath. To reinvigorate the field of international macroeconomics, Kristin Forbes of the Massachusetts Institute of Technology (MIT) and Jeff Frankel of Harvard University are organizing a National Bureau of Economic Research (NBER) project on "The Global Financial Crisis." Pairing the two of them illustrates how their project, like everything NBER does, will be strictly non-partisan and aimed at developing fundamental understanding rather than explicit policy recommendation. For example, three basic research questions this project will concentrate on are: How did global imbalances contribute to the crisis? How was the crisis transmitted internationally? How has the global nature of the crisis affected macroeconomic policy ranging from fiscal and monetary policy to bank regulation and the role of the dollar? The plan is to issue a broad call for proposals to prepare and present papers on these topics, commission a dozen of the best submitted in the competitive solicitation, post them as working papers, and hold a pre-conference with assigned discussants to provide critiques. Refocusing and revitalizing research on international macroeconomics like this is just one component of the Sloan Foundation's developing initiative on international financial regulation. The goal of this entire initiative is to inform, prepare, and eventually institute significant reforms of the international financial and monetary system.