In this EU FP7 project, from February 1, 2013 till January 31, 2016, 12 European universities collaborate.
The RASTANEWS project aims at answering the following questions:
The RASTANEWS view is that a convincing reply to these questions can only come through a rethinking of the theoretical and empirical framework over which macroeconomic research has focused in recent years.
In particular, we find there are three key issues about the working of the macro-economy that deserve deeper investigation: incomplete and informationally inefficient financial markets, the Achilles' heel of the consensus DSGE models; heterogeneity in expectations, which should play a fundamental role in explaining the behaviour of asset prices, and the need to overcome the traditional dichotomy between Keynesian (short run) and neoclassical (long run) policy prescriptions.
The different research units will analyse the issues at hand from different perspectives but with the common objective to give rise to a new theoretical and empirical framework, able to give useful policy guidance to the ongoing European reform process.