Hub Co-Leader: Prof Roger E. A. Farmer 

Rodger FarmerRoger E. A. Farmer is the Co-Leader for Rebuild Macro’s Instability Hub and Research Director at NIESR, London. He is also a Professor of Economics at the University of Warwick in the UK and a Distinguished Professor of Economics at UCLA. Roger is widely known as a world-leading economist and former Senior Houblon-Norman Fellow at the Bank of England. He has published numerous scholarly articles in leading academic journals, as well as books that have been translated into Chinese, Italian, Vietnamese and Hungarian.

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Hub Co-Leader: Jean-Philippe Bouchaud

Jean-Philippe Bouchaud

Jean-Philippe Bouchaud is the Co-Leader for Rebuild Macro’s Instability Hub. After studying at the French Lycée of London, he graduated from the Ecole Normale Supérieure in Paris, where he also obtained his PhD in physics. He was then appointed by the CNRS until 1992. After a year spent in the Cavendish Laboratory (Cambridge), he joined the Service de Physique de l’Etat Condensé (CEA-Saclay), where he worked on the dynamics of glassy systems and on granular media.

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Modern macro models are based on the premise that agents will respond to any unforeseen disturbance in such a way that their actions will co-ordinate activity toward the optimal use of resources. The task for policymakers is then merely to reduce economic volatility. This self-stabilising structure appears to be at best questionable in the wake of the Great Recession. In recovery, the spectre of ‘secular stagnation’ has emerged, with no self-correcting mechanism.

We expect scholars to bring insights from sociology, psychology, anthropology and network theory in order to extend our understanding of preferences and decision making, and the implications for stability. Economists may ask how an inherent instability hypothesis can be usefully incorporated into models and used as a guide to policy. Scientists may query whether agent-based models can be revised, so that they may provide better predictions of policy outcomes or more robust policy options in unstable economies. Or perhaps some entirely new approach will emerge that we have not yet foreseen.

Current Research

Do Expectations Drive Big Events?
Endogenous Extrapolation: Implications for Boom-Bust Cycles and Macroeconomic Policy
Principal Investigator: Michael Hatcher Dr Michael Hatcher is Lecturer in Economics within Economic, Social and Political Science at… Read more.
But why are economies stable?
But Why are Economies Stable?
The macroeconomic question: For mathematicians, the puzzle is not why economies are unstable but why they are stable. Since the Read more.
Macroeconomic implications of the sampling brain
Macroeconomic Implications of the Sampling Brain
Principal Investigator: Professor Nick Chater Professor Nick Chater is Professor of Behavioural Science at Warwick Business School, having… Read more.
Anxiety, Competing Narratives & the Macroeconomy: What is the Role of Policy in Stabilising Expectations?
This project will focus on examining the conditions under which competing narratives co-exist, influence (and are influenced by) individuals’ emotions Read more.
Macroeconomic Fluctuations as Emergent Behaviour
Principal Investigator: Professor Franck Portier Franck Portier is Professor of Macroeconomics at University College London, Senior Member of… Read more.
An Interactions-based Macroeconomic Model
Decision making involves independent thinking and exchange of opinions via interaction. By taking this into account can we captuer sources Read more.

Related Blogs

Do Expectations Drive Big Events?
Do Expectations Drive Big Events?
Michael Hatcher - A key distinction between economies and physical systems, like the weather, is that economies consist of individuals Read more.
Central banking: when communication is the policy
Central Banking: When Communication is the Policy
The psychological and behavioural economics literature has had a transformative impact on how we understand people’s financial and personal decision-making. Read more.
Rebuilding macroeconomics: Roger Farmer Instability Hub
Ergodicity: Rebuild Macro’s Instability Workshop Summary
On 8 March 2018, Jean-Philippe Bouchaud and I held the first meeting of the Rebuilding Macroeconomics project’s Instability Hub. There Read more.
Rebuild Macroeconomics instability Hub: An Introduction
Rebuild Macro’s Instability Hub: An Introduction
Roger Farmer - Jean-Philippe Bouchaud and I are pleased to be leading a research hub devoted to understanding why economies Read more.

Research Hub Summary

background information Summary note


Each Research Hub will host a number of workshops and invite experts from a variety of disciplines to share their thoughts, and contribute towards generating new ideas within the Hub.

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