Following the Princeton tradition of incorporating financial frictions in macroeconomic models - scholars like Ben Bernanke come to mind - this camp brings together top 2nd year Ph.D. students who wish to write a Ph.D. thesis at the intersections between Macroeconomics and Finance. The recent experience starting with the run-up of imbalances and bubbles in the first decade of the 21st century, followed by a severe financial crisis that ultimately led to the Great Recession, calls for new frameworks to study macro-prudential policy tools and to design a new international financial architecture. The aim of this meeting is to bridge the gap between modern finance and macroeconomics and expose the best students from across the country to macroeconomic models with financial frictions and /or non-standard expectations.
2015 Princeton Initiative will take place from September 11-13, 2015
Students must have successfully completed the first year sequence of their PhD programs. Ideally, they should also have had some exposure to continuous time finance.
- “Macroeconomics with Financial Frictions: A Survey” and "Redistributive Monetary Policy"
- Summary of 2012 Princeton Initiatve
Each department can nominate a limited number of candidates. The final selection will be made by the organizers of the Event.