Ferre De Graeve

I'm an economist at the Research Department of the Sveriges Riksbank. My research interests are: Macroeconometrics, Macro-Finance, Monetary Policy, DSGE models & Banking. 
Contact: ferredegraeve 'at' yahoo com
 

Coming soon

"Resuscitating Long-Run Restrictions", with A. Westermark.

            Upcoming presentation at CREI / UPF

            Recently presented at Atlanta Fed, Dallas Fed, Cleveland Fed, NORMAC and EIEF.

 

Working papers

"Stylized (Arte)Facts on Sectoral Inflation", with K. Walentin.

Abstract:

Research on disaggregate price indices has found that sectoral shocks generate the bulk of sectoral inflation variance, but no persistence. Aggregate shocks, by contrast, are the root of sectoral inflation persistence, but have negligible relative variance. We argue that these findings are largely an artefact of using simple factor models to characterize inflation. Sectoral inflation series are subject to particular features such as sales and item substitutions. In factor models, these blow up the variance of sectoral shocks, while reducing their persistence. Controlling for such effects, we find that inflation variance is driven by both aggregate and sectoral shocks. Sectoral shocks, too, generate substantial inflation persistence. Both findings contrast sharply with earlier evidence from factor models. However, these results aligns well with recent micro evidence. This has implications for the validation of the foundations of price stickiness, and provide quantitative inputs for calibrating models with sectoral heterogeneity.

            Upcoming presentation at Bank of England

 

“Identifying VARs through Heterogeneity: An Application to Bank Runs”, with A. Karas  
Abstract:
We incorporate cross-sectional heterogeneity into structural VARs. Heterogeneity provides an additional dimension along which one can identify structural shocks and perform hypothesis tests. We provide an application to bank runs, based on microeconomic deposit market data. We impose identification restrictions both in the cross-section (across insured and non-insured banks) and across variables (as in macro SVARs). We thus (i) identify bank runs, (ii) quantify the contribution of competing theories, and, (iii) evaluate policies such as deposit insurance. The application suggests substantial promise for the approach and has strong policy implications.
 

Publications

“Risk Premiums and Macroeconomic Dynamics in a Heterogeneous Agent Model”
De Graeve, F., Dossche, M., Emiris, M., Sneessens H. and R. Wouters
Journal of Economic Dynamics and Control, Volume 34, Issue 9, September 2010, pp. 1680-1699
 

“A Structural Decomposition of the US Yield Curve” (working paper)

De Graeve, F., Emiris, M. and R. Wouters 
Journal of Monetary Economics, Volume 56, Issue 4, May 2009, pp. 545-559

 

“The External Finance Premium and the Macroeconomy: US post-WWII Evidence” (working paper)

De Graeve, F.

Journal of Economic Dynamics and Control, Volume 32, Issue 11, November 2008, pp. 3415-3440

 

“Monetary Policy and Financial (In)Stability: An Integrated Micro-Macro Approach” (working paper)

De Graeve, F., Kick, T. and M. Koetter

Journal of Financial Stability, Volume 4, Issue 3, September 2008, pp. 205-231

 

“Competition, Transmission and Bank Pricing Policies: Evidence from Belgian Loan and Deposit Markets” (working paper)

De Graeve, F., De Jonghe, O. and R. Vander Vennet

Journal of Banking and Finance, Volume 31, Issue 1, January 2007, pp. 91-116

 

Professional service

Associate Editor:

  • Economic Inquiry, 2010 - present

Referee:

  • B.E. Journal of Macroeconomics
  • Canadian Journal of Economics
  • Economic Inquiry
  • Economic Journal
  • Economic Systems
  • Economics of Transition
  • Journal of Banking and Finance
  • Journal of Econometrics
  • Journal of Economic Dynamics and Control
  • Journal of Financial Stability
  • Journal of Monetary Economics
  • Oxford Bulletin of Economics and Statistics
  • Review of Financial Studies

Conference Organization: 

Seminar Organization: 2010 - present, Riksbank

 

Discussions:

  • “Financial Intermediation, Investment Dynamics and Business Cycle Fluctuations”, by Ajello, CEPR
  • Expansionary and Contractionary Technology Improvements”, by Balleer and Enders, NORMAC
  • “The Dark Side of Bank Wholesale Funding”, by Huang and Ratnovski, FRB Boston
  • “Changes in Inflation Persistence: Lessons from Estimated Markov-Switching New Keynesian Models”, by Davig and Doh, FRB Dallas
  • “Credit Market and Macroeconomic Volatility”, by Medicino, CEPR
  • “The Fed and the Stock Market”, by D’Amico and Farka, FMA

 


Subpages (1): CV0909