Macroeconomic Modeling and Systemic Risk Research Initiative

THE OPPORTUNITY:

The financial crisis of 2007-09 revealed serious gaps in our ability to define, measure and manage financial sector activities that pose risks to the macroeconomy. With Arete support, Lars Peter Hansen and the Becker Friedman Institute applied for and won a three year grant from the Alfred P. Sloan Foundation to establish the Macroeconomic Modeling and Systemic Risk Research Initiative. The project analyzes the interplay between the financial sector and the macroeconomy, and produces practical tools for assessing systemic risk.  The Initiative assembles a group of experts with complementary knowledge and skills from the University of Chicago and other leading academic institutions around the country.  This project engages central bankers and policy leaders globally, provides fellowships to graduate students with fresh perspectives in developing new macroeconomic models, and is gaining momentum and interest among researchers around the world.  

WHAT WE DID FOR THEM:

• Engage foundations 

Principal Investigator: Lars Peter Hansen

Website: www.mfmgroup.org