Macroeconomics Research Group

The group's research focuses on monetary and fiscal policy, foreign direct investment, public debt, economic growth and exchange rates. The group have produced numerous publications in 4* and 3* rated economic journals and has been in receipt of grants from the EU, ESRC and HMT. It benefits from connections with international organisations such as the IMF and ECB, for which members have either worked or spent time as visiting researchers.


Honorary staff

Professor Simon Price (Honorary, Bank of England)

PhD students

G M Arif

Alessandro Cantelmo

Monika Junicke (submitted December 2013)

Ayah El Said

Amna Saeed


Ben-Gad: HMRC/HMT/ESRC Joint Research Programme grant for £60,000 on Distortionary taxation, debt and immigration, 2010-11.

Pearlman: EU Framework Programme 7 grant for €129,000 on Optimal Fiscal and Monetary Policy Algorithms in Multi-Country Econometric Models, in collaboration with five other centres in Europe, 2008-11.

Pearlman: ESRC Research Grant for Monetary Fiscal Policy Rules with Labour Market and Financial Frictions fro £15,000, led by Surrey University, 2010-12.

Pearlman: EU Framework Programme 7 grant for €130,000 (approx.) on Integrated Macro-Financial Modelling for Robust Policy Design, in collaboration with nine other centres in Europe, 2014-17.


  • Aksoy, Yunus & Melina, Giovanni, 2011. "U.S. fiscal indicators, inflation and output", The North American Journal of Economics and Finance, Elsevier, vol. 22(3), 221-236.
  • Aksoy, Yunus & Melina, Giovanni, 2012. "An empirical investigation of US fiscal expenditures and macroeconomic outcomes", Economics Letters, Elsevier, vol.114(1), 64-68.
  • Basu, P., Gillman, M. & Pearlman, J, 2012, "Inflation, Human Capital and Tobin's q", Journal of Economic Dynamics and Control, 36(7), 1057-74.
  • Batini, B., Levine, P & Pearlman, J., 2009, "Monetary Rules in Emerging Economies with Financial Market Imperfections", in NBER Conference Volume, International Dimensions of Monetary Policy, ed. J. Gali & M. Gertler.
  • Batini, N., Levine, P. & Pearlman, J., 2009,"Estabilización óptima del tipo de cambio en una economía dolarizada con meta inflacionaria ," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 16, 37-82.
  • Ben-Gad, M, 2012, "The Two Sector Endogenous Growth Model: An Atlas,"Journal of Macroeconomics , 34, 706-722.
  • Ben-Gad, M, 2008, "Capital-Skill Complementarities and the Immigration Surplus" Review of Economic Dynamics , 11, 335-365.
  • Callegari, G, Melina,G & Batini, N, 2012. "Successful Austerity in the United States, Europe and Japan," IMF Working Papers 12/190, International Monetary Fund.
  • Cantore, C, Levine, P, Melina, G & Yang, Bo, 2012. "A fiscal stimulus with deep habits and optimal monetary policy," Economics Letters, Elsevier, vol. 117(1), 348-353.
  • Cantore, C, Levine, P,Melina, G & Pearlman, J, 2013. "Optimal Fiscal and Monetary Rules in Normal and Abnormal Times," Working Papers 16, Department of Economics, City University London.
  • Costantini, M, Fragetta, M. & Melina, G., 2013. "Determinants of Sovereign Bond Yield Spreads in the EMU. An Optimal Currency Area Perspective," Working Papers 13, Department of Economics, City University London.
  • Ellison, M & Pearlman, J, 2011. "Saddlepath learning," Journal of Economic Theory, Elsevier, vol. 146(4), 1500-1519, July.
  • Fragetta, M & Melina, G, 2013, "Identification of monetary policy in SVAR models: a data-oriented perspective," Empirical Economics , Springer, vol. 45(2), 831-844. Fragetta, M & Melina, G, 2011. "The Effects Of Fiscal Policy Shocks In Svar Models: A Graphical Modelling Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(4), 537-566, 09.
  • Gabriel, V, Levine, P and Pearlman, J, 2012, "A DSGE Model of India", The Oxford Handbook of the Indian Economy.
  • Jafarey, S & Lahiri, S, 2009, "Developing country borrowing from a monopolistic lender: strategic interactions and endogenous leadership",The Japanese economic review, 60, 191-207.
  • Levine, P, Lotti, E, Pearlman, J and Pierse, R 2010, "Growth And Welfare Effects Of World Migration," Scottish Journal of Political Economy, 57(5), 615-643.
  • Levine, P, McAdam, Pearlman, J, 2012, "Probability Models and Robust Policy Rules", European Economic Review, 56(2), 246-262.
  • Levine, P., McAdam, P. and J. Pearlman, J, 2009. ''Quantifying and Sustaining Welfare Gains from Monetary Commitment'', Journal of Monetary Economics, vol. 55(7), 1253-1276.
  • Levine, P, Pearlman, J, Perendia, G, Yang, B. 2012, "Endogenous Persistence in an Estimated DSGE Model under Imperfect Information", Economic Journal , 122 (565), 1287-1312,
  • Levine, P., Pearlman, J. and  R. Pierse, 2008, "Linear-Quadratic Approximation, External Habit and Targeting rules," Journal of Economic Dynamics and Control, vol. 32(10), 3315-3349.
  • Levine, P., Pearlman, J. and B, Yang, 2008, ''The Credibility Problem Revisited: Thirty Years on from Kydland and Prescott'', Review of International Economics
  • Melina, G & Villa, S, 2013. "Fiscal Policy and Lending Relationships," IMF Working Papers 13/141, International Monetary Fund.
  • Pilbeam, K. and Nagle, S. 2009, "High-Tech IPOs in the US, UK and Europe after the Dot-Com Bubble" International Journal of Financial Services Management,. vol 4, no 1, pp.64-75.
  • Pilbeam and Obolevicuite, N. 2012, "Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment? Evidence from the European Union," Journal of Economic Asymmetries, vol 9, no 1, pp.89-104.
  • Pilbeam, K., Olmo J., and Pouliot,W. 2011, "Detecting the Presence of Insider Trading via Structural Break Tests", Journal of Banking and Finance, vol 35, no 11, pp.2820-2828.
  • Pilbeam, K. and J. Olmo, J., 2011, "Uncovered Interest Rate Parity and Exchange Market Efficiency: A Re-Examination of the Evidence,"International Journal of Finance and Economics. vol 16, pp.189-204.
  • Pilbeam. K. and Olmo, J. ,2011, "The Forward Discount Puzzle and Market Efficiency." Annals of Finance, vol 7, No 1, pp.119-135.
  • Pilbeam. K. and Olmo, J., 2009, "Are Rejections of Uncovered Interest Parity Valid?" Journal of Economic Integration, vol 24, no 2, pp370-385.
  • Pilbeam. K. and Olmo, J., 2009, "The Profitability of Carry Trades," Annals of Finance, vol 5, no 2. pp.231-241.
  • Pilbeam, K. and Noronha, R. 2008, "Risk Budgeting and Value at Risk,"International Journal of Monetary Economics and Finance , vol 1 no 2, pp.162-176 .
  • Tsoukis, C, Kapetanios, G and Pearlman, J, 2011, "Elusive Persistence: Wage And Price Rigidities, The New Keynesian Phillips Curve and Inflation Dynamics," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), 737-768.