25 Years IWH

25 Jahre IWH
  1. About the IWH
  2. Team
  3. Economists

Professor Dr Mathias Trabandt

Professor Dr Mathias Trabandt
Current Position

since 4/17

Research Fellow at the Department of Macroeconomics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 8/15

Professor of Macroeconomics

Freie Universität Berlin

Research Interests
  • applied econometrics
  • labour economics
  • international macroeconomics

Mathias Trabandt is a Research Fellow at the IWH since April 2017. His fields of interest are macroeconomics, monetary economics, public economics, labour economics, international macroeconomics, financial frictions and applied econometrics.

Mathias Trabandt is a Professor of Macroeconomics at the School of Business and Economics at Freie Universität Berlin since August 2015. Before joining the School of Business and Economics, he was Chief of the “Global Modeling Studies Section” at the International Finance Division of the Federal Reserve Board of Governors in Washington D.C. Earlier in his career, Mathias Trabandt also held positions as an economist at the European Central Bank and Deutsche Bundesbank in Frankfurt and at Sveriges Riksbank in Stockholm. He received his PhD in economics from Humboldt University Berlin.

Your contact

Professor Dr Mathias Trabandt
Professor Dr Mathias Trabandt
Mitglied - Department Macroeconomics
Send Message Personal page

Publications

cover_journal-of-economic-perspectives.jpg

On DSGE Models

Lawrence J. Christiano Martin S. Eichenbaum Mathias Trabandt

in: Journal of Economic Perspectives, forthcoming

Abstract

Macroeconomic policy questions involve trade-o s between competing forces in the economy. The problem is how to assess the strength of those forces for the particular policy question at hand. DSGE models are the leading framework that macroeconomists have for dealing with this problem in an open and transparent manner. This paper reviews the state of DSGE models before the financial crisis and how DSGE modelers have responded to the crisis and its aftermath. In addition, we discuss the role of DSGE models in the policy process.

read publication
cover_journal-of-applied-econometrics.gif

Should We Use Linearized Models To Calculate Fiscal Multipliers?

Jesper Lindé Mathias Trabandt

in: Journal of Applied Econometrics, forthcoming

Abstract

We calculate the magnitude of the government consumption multiplier in linearized and nonlinear solutions of a New Keynesian model at the zero lower bound. Importantly, the model is amended with real rigidities to simultaneously account for the macroeconomic evidence of a low Phillips curve slope and the microeconomic evidence of frequent price changes. We show that the nonlinear solution is associated with a much smaller multiplier than the linearized solution in long-lived liquidity traps, and pin down the key features in the model which account for the di¤erence. Our results caution against the common practice of using linearized models to calculate scal multipliers in long-lived liquidity traps.

read publication
cover_european-economic-review.jpeg

The Macroeconomic Risks of Undesirably Low Inflation

Mathias Trabandt Jonas Arias Christopher J. Erceg

in: European Economic Review, 2016

Abstract

This paper investigates the macroeconomic risks associated with undesirably low inflation using a medium-sized New Keynesian model. We consider different causes of persistently low inflation, including a downward shift in long-run inflation expectations, a fall in nominal wage growth, and a favorable supply-side shock. We show that the macroeconomic effects of persistently low inflation depend crucially on its underlying cause, as well as on the extent to which monetary policy is constrained by the zero lower bound. Finally, we discuss policy options to mitigate these effects.

read publication
Browse all refereed publications

Related Topics

Econometrics
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo