Macro-Finance

E802234

Macro-Finance is a field of economics that studies how macroeconomic conditions and risks are linked to asset prices and financial markets, often using models that connect consumption, investment, and returns over time.

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Predicate Object
instanceOf academic discipline
field of economics
research area
analyzes credit spreads
equity risk premia
exchange rates
inflation-linked securities
macro risk factors in asset pricing
term structure of interest rates
appliedIn financial stability policy
macroprudential regulation
monetary policy analysis
portfolio management
sovereign risk assessment
connects aggregate risk and financial markets
consumption and asset returns
investment and asset returns
macroeconomic shocks and risk premia
developedIn early 21st century
late 20th century
emergedFrom integration of macroeconomics and finance
examines effects of fiscal policy on financial markets
long-run risks in asset pricing
rare disasters and asset prices
role of monetary policy in asset prices
systemic risk and macroeconomic outcomes
time-varying risk premia
transmission of macroeconomic shocks through financial channels
focusesOn asset pricing with macroeconomic foundations
cross-sectional variation in asset returns
effects of business cycles on financial markets
macro-financial linkages
time-series behavior of asset returns
relatedTo asset pricing
business cycle theory
financial economics
financial stability analysis
macroeconomics
monetary economics
studies interaction between macroeconomy and finance
link between macroeconomic conditions and asset prices
link between macroeconomic risks and financial markets
uses calibration and simulation
consumption-based asset pricing models
dynamic stochastic general equilibrium models
general equilibrium models
intertemporal optimization models
panel data econometrics
structural estimation
time-series econometrics

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John Cochrane notableWork Macro-Finance