Innovations in Macroeconomics

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We suggest improvements, develop policy guidelines, and design new institutions aimed at fostering the common welfare. The aim of this project is to examine the relationship between basic research and economic growth and to offer answers to central policy questions, such as what is the optimal financing scheme or what kind of international coordination is desirable.

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Collaboration between the private and public sectors

In democracies, many political projects are not implemented, although they would yield social benefits. In other areas, policy activities are pushed beyond socially desirable levels.

Homepage – Chair of Macroeconomics: Innovation and Policy | ETH Zurich

We address these issues and suggest new solutions for them. Price stability and a sturdy banking system are economy-wide objectives.

In macroeconomic policymaking, realigning money and banking requires a novel architecture and a new macro instrument to safeguard financial stability. We tackle this issues with various approaches. We address the following issues:. Homepage Navigation Content Sitemap Search. About us. Nordhaus decided to work on this topic in the s, as scientists had become increasingly worried about the combustion of fossil fuel resulting in a warmer climate.

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In the mids, he became the first person to create an integrated assessment model , i. His model integrates theories and empirical results from physics, chemistry and economics. Nordhaus' model is now widely spread and is used to simulate how the economy and the climate co-evolve. It is used to examine the consequences of climate policy interventions, for example carbon taxes.

The contributions of Paul Romer and William Nordhaus are methodological, providing us with fundamental insights into the causes and consequences of technological innovation and climate change. This year's Laureates do not deliver conclusive answers, but their findings have brought us considerably closer to answering the question of how we can achieve sustained and sustainable global economic growth.

Innovation economics

The Prize amount: 9 million Swedish krona, to be shared equally between the Laureates. Materials provided by Nobel Foundation.

Note: Content may be edited for style and length. Science News.


Integrating innovation and climate with economic growth William D. Technological change Romer demonstrates how knowledge can function as a driver of long-term economic growth. Climate change Nordhaus' findings deal with interactions between society and nature. The Laureates: William D.

Creative Destruction

Nordhaus , born in Albuquerque, USA. Paul M.

Bibliographic Information

Romer , born in Denver, USA. Story Source: Materials provided by Nobel Foundation. ScienceDaily, 8 October Nobel Foundation.