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Macroeconomics and Economic Policy

The Macroeconomics and Economic Policy group is one of the oldest at CATÓLICA-LISBON. This group has focused its research efforts on economic policy and macroeconomics for over three decades.

The members of this research group are published in top journals such as the American Economic Review, the Journal of Monetary Economics, the Journal of Economic Theory or the Economic Journal. Their work includes a long-standing tradition for authoring significant original insights in influential publications. Group members are also active in the research community through reviews and editorial work for such publications as Cahiers d’Économie Politique, the Economic Bulletin, Cuadernos de Economía - Spanish Journal of Economics and Finance, and the Portuguese Economic Journal.

A commitment to society and the research community

The group’s scientific research has been presented in over two hundred conferences in the past seven years, from ASSET to the European Economic Association and the Econometric Society. At CATÓLICA-LISBON, the Macroeconomics group researchers have been in charge of hosting important economic conferences as well, namely Theories and Methods in Macroeconomics - T2M, in 2017, the ADEMU Workshop - Rethinking Fiscal Policy, also in 2017, Financial and Real Interdependencies: volatility and inequalities and economic policies, in 2015, and the 14th Conference of the Association for Public Economic Theory, in 2013.

Researchers in Macroeconomics and Economic Policy at CUBE are also closely connected to Portuguese society. They participate and advise in studies for the NECEP center for macroeconomic studies, whose economic analyses and forecasts are followed internationally, and for the Observatory on Public Private Partnerships, also at the University. They are also consulted as experts by senior officials in the IMF or other international institutions, and by the media.

Members of the group are part of international funding bodies at the highest level of decision-making. Isabel Horta Correia is a member of the European Economic Association and belongs to its Council, aside from being, with Pedro Teles, a Center for Economic and Policy Research fellow. Leonor Modesto is a research fellow of the Institute of Labour Economics (IZA). Several of the group’s members have been part of evaluation panels for the European Research Council, the US National Science Foundation, of the French Agency for Evaluation of Research and Higher Education, and also for the Portuguese Agency for Evaluation of Research and Higher Education (A3ES).

Main fields of research

Firstly, this group does research in endogenous fluctuations. Recent work has been on the effects of different market distortions on determinacy and cycles driven by self-fulling volatile expectations, with the introduction of labor market distortions, for example. The destabilizing effects of social norms and fiscal policy rules are also a topic of study for these researchers.

Secondly, researchers look at optimal taxation: how it can be done efficiently and with the best distribution. Thirdly, several researchers in the group have done work on sovereign debt, and the role that expectations play in debt crises of this kind. The monetary and fiscal policy area is a big focus as well, in fourth place: work has been done at CUBE to study the interaction between monetary and fiscal policy, long term, among other subjects.

Team members


Title: Endogenous cycles
Principal Investigator (PI): Leonor Modesto
Funding: Fundação para a Ciência e Tecnologia (FCT)

Title: A Dynamic Economic and Monetary Union
Principal Investigator (PI): Pedro Teles
Funding: H2020 Project - European Union