Macroeconomics and Financial Systems research cluster

About us

We conduct ground-breaking research that relies on the use of innovative approaches to macroeconomics and finance. Our current work focuses on shadow banking, financial and business cycles, development finance, ecological macroeconomics, climate finance, inequality, the history of macroeconomic thought, fiscal and monetary policy, transnational banking and capital controls. Our research employs both qualitative and quantitative methods. We use a variety of macroeconomic modelling approaches, including Stock-Flow Consistent (SFC) models, Dynamic Stochastic General Equilibrium (DSGE) models and Agent-Based (AB) models.

Research and engagement

Our work has been published in top quality journals such as the Cambridge Journal of Economics, the Canadian Journal of Economics, Development and Change, Ecological Economics, Nature Climate Change, the Journal of Development Studies, the Journal of Common Market Studies, New Political Economy and the Review of International Political Economy. 

Funders of our research projects include the Foundation for European Progressive Studies (FEPS), the British Academy, the Institute for New Economic Thinking (INET) and the Network for Social Change.  We engage with various policy institutions, civil society organisations and think tanks, including the Bank for International Settlements (BIS), the European Stability Mechanism (ESM), the New Economics Foundation, Finance Watch Brussels, the International Labour Organisation (ILO) and UNCTAD.


Selected publications

  • Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G. and Tanaka, M. (2018) Climate change challenges for central banks and financial regulators. Nature Climate Change, 8 (6). pp. 462-468.
  • Dafermos, Y., Nikolaidi, M. and Galanis, G. (2018) Climate change, financial stability and monetary policy. Ecological Economics, 152. pp. 219-234.
  • Dafermos, Y. (2018) Debt cycles, instability and fiscal rules: A Godley-Minsky synthesis. Cambridge Journal of Economics, 42 (5). pp. 1277-1313.
  • Dilaver, O., Jump, R. and Levine, P. (2018) Agent-based macroeconomics and dynamic stochastic general equilibrium models: Where do we go from here? Journal of Economic Surveys, 32 (4). pp. 1134-1159.
  • Gabor, D. and Vestergaard, J. (2018) Chasing unicorns: The European single safe asset. Competition and Change, 22 (2). pp. 140-164.
  • Gabor, D. (2018) Goodbye (Chinese) shadow banking, hello market-based finance. Development and Change, 49 (2). pp. 394-419.
  • Povoledo, L. (2018) Pricing behaviour and the role of trade openness in the transmission of monetary shocks. Journal of Macroeconomics, 57. pp. 231-247.
  • Ruziev, K. and Webber, D. (2018) Does connectedness improve SMEs’ access to formal finance? Evidence from post-communist economies. Post-Communist Economies
  • Dafermos, Y., Nikolaidi, M. and Galanis, G. (2017) A stock-flow-fund ecological macroeconomic model. Ecological Economics, 131. pp. 191-207.
  • Gabor, D. and Brooks, S. (2017) The digital revolution in financial inclusion: International development in the fintech era. New Political Economy, 22 (4). pp. 423-436.
  • Jump, R. (2017) Inequality and aggregate demand in the IS-LM and IS-MP models. Bulletin of Economic Research, 70 (3). pp. 269-276.
  • Michell, J. (2017) Do shadow banks create money? ‘Financialisation’ and the monetary circuit. Metroeconomica, 68 (2). pp. 354-377.
  • Povoledo, L. (2017) Modelling the sectoral allocation of labour in open economy models. Canadian Journal of Economics, 50 (3). pp. 685-710.
  • Ruziev, K. (2017) Political connectedness and formal finance in transition economies. IZA World of Labor (398). pp. 1-11.
  • Stockhammer, E. and Michell, J. (2017) Pseudo-Goodwin cycles in a Minsky model. Cambridge Journal of Economics, 41 (1). pp. 105-125.
  • Gabor, D. (2016) The (impossible) repo trinity: The political economy of repo markets. Review of International Political Economy, 23 (6). pp. 967-1000.
  • Gabor, D. (2016) A step too far? The European FTT on shadow banking. Journal of European Public Policy, 23 (6). pp. 925-945.
  • Gabor, D. and Ban, C. (2016) Banking on bonds: The new links between states and markets. JCMS: Journal of Common Market Studies, 54 (3). pp. 617-635.
  • Ruziev, K. and Midmore, P. (2015) Connectedness and SME financing in post-communist economies: Evidence from Uzbekistan. Journal of Development Studies, 51 (5). pp. 586-602.


  • The role of indeterminacy and self-fulfilling expectations in emerging economies, Laura Povoledo, funder: The British Academy, 2016-2017.
  • Managing shadow money, Daniela Gabor, funder: Institute for New Economic Thinking, 2015-2016.
  • Capital Markets Union, Daniela Gabor, funder: Foundation for European Progressive Studies, 2015-2016.
  • How can central banks enhance ecological sustainability? Yannis Dafermos, funder: University of the West of England, 2015-2016.
  • Developing a multi agent framework for monetary macroeconomic analysis, Jo Michell, funder: University of the West of England, 2015-2016.
  • Progressive macroeconomic scenarios for Europe, Jo Michell, funder: Foundation for European Progressive Studies, 2014-2016.
  • Modelling the interactions between the ecosystem, the financial system and the macroeconomy, Yannis Dafermos, funder: Network for Social Change, 2014-2016.
  • A Study of Informal Credit Institutions in Post-communist Uzbekistan, Kobil Ruziev, funder: The British Academy, 2011.

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