The IEP Researchers Visited Barcelona Graduate School of Economics

On 6-10 July 2015, Alexandra Bojechkova, Head of the Monetary Policy Department, and Yury Ponomarev, researcher of Industrial Organization and Infrastructure Department, attended the Summer School of the Barcelona Graduate School of Economics.

Within advanced course "Empirical Time Series for Macroeconomic Analysis: Advanced" instructed by Luca Gambetti, they investigated the problem of non-fundamentalness, a problem that can arise in SVAR models because of a gap between the information set of the econometrician and that of the agents. The course covered both theoretical and empirical procedures to detect non-fundamentalness and discuss models to tackle non-fundamentalness, in particular Factor models and FAVARs. In this context they reviewed the news-driven business cycles debate and the fiscal foresight literature.