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Macroeconomics without Frontiers

December 1-2, 2006
Federal Reserve Bank of Minneapolis and the University of Minnesota

In the past thirty years, macroeconomics has undergone a radical transformation. Its tools were then primarily empirical as researchers analyzed the properties of large-scale forecasting models, as applied to aggregate data. Its focus was largely on monetary and fiscal policy, and their impact on inflation, unemployment, and Gross National Product.

Now, macroeconomists use a robust blend of sophisticated theory and rich data analyses. Their scope of research has exploded. Macroeconomic research is now a huge part of labor economics, political economy, international trade, and industrial organization. Macroeconomics is no longer a field unto itself, but a way of thinking that can attack problems of interest in all fields.

The Federal Reserve Bank of Minneapolis and the University of the Minnesota have been at the forefront of this transformation. The aim of the conference is to bring together frontier work in this larger vision of macroeconomics.

Friday, December 1, 2006
Session 1
Chair: Fabrizio Perri 


1:45-3:00 p.m. George Alessandria (with Horag Choi)
Firm Heterogeneity, Export Participation, and Trade Reform Dynamics ” [523K PDF]
  Discussants: Gita Gopinath and Yan Bai
3:00-3:15 p.m. Break
3:15-4:30 p.m. Tom Sargent (with N. Williams and T. Zha)
The Conquest of South American Inflation” [797K PDF]
Selo Imrohoroglu
 and Gary Hansen
4:30-4:45 p.m. Break
4:45–6:00 p.m. Mike Golosov 
(with D. Acemoglu and A. Tsyvinski)
Political Economy and the Structure of Taxation” [483K PDF]
  Discussants: Hal Cole and V.V. Chari
6:30–10:00 p.m. Cocktails and Dinner at the FED
Saturday, December 2, 2006
Session 2 
Chair: Narayana Kocherlakota
9:00-9:30 a.m. Continental Breakfast
9:30–10:45 a.m. Ivan Werning
Optimal Fiscal Policy with Redistribution” 
[416K PDF]
Marios Angeletos
 and Aleh Tsyvinski
10:45–11:00 a.m. Break
11:00 a.m.–12:15 p.m. Andy Atkeson (with A. Burstein)
Innovation, Firm Dynamics, and International Trade ” [512K PDF]
Linda Tesar
 and Nancy Stokey
12:15 p.m.–1:15 p.m. Lunch
Session 3 
Chair: Tim Kehoe
1:15–2:30 p.m. Fernando Alvarez (with F. Lippi)
Financial Innovation and the Transactions Demand for Cash” [1,018K PDF]
Anil Kashyap
 and TBA
2:30-2:45 p.m. Break
2:45-4:00 p.m. Victor Rios-Rull 
(with E. Mendoza and V. Quadrini)
Financial Integration, Financial Deepness and Global Imbalances” [542K PDF]
David Backus and Ayse Imrohoroglu
4:00–4:15 p.m. Break
4:15-5:30 p.m. Lee Ohanian 
What Caused the Great Depression? Herbert Hoover and Labor Shedding” [19,571K PDF]
Robert Lucas
 and Robert Shimer
6:30 p.m. Conference Dinner at Nochee