Public interventions in asset markets (C02)

• Subject Area: Economic Policy, Applied Economics
• Term: since 2018
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 326731373

We study monetary policy and exchange rate interventions in the context of product, firm, and household heterogeneity. We develop new empirical strategies for understanding the welfare consequences of inflation and the sources of the recent inflation surge. We seek to understand the role of subjective expectations in foreign exchange markets, especially in explaining exchange rate puzzles and the effects of foreign exchange interventions. The project also focuses on how households’ subjective beliefs affect the transmission of economic policy, and how policy uncertainty affects the macroeconomy in the presence of household heterogeneity.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 224: Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability
• Applicant Institution: Rheinische Friedrich-Wilhelms-Universität Bonn
• Project Heads: Professor Dr. Klaus Adam; Dr. Benjamin Born, since 1/2026; Professorin Dr. Narly Dwarkasing, until 9/2019; Professor Dr. Moritz Schularick, until 12/2025