Professor Matthias Schlegl from the Faculty of Economics, applies new macroeconomic models to study economic dynamics with zero interest rates. These innovative models facilitate economic analysis in zero interest rate environments, a task standard models struggle with. Japan has maintained a zero interest rate policy for over two decades, providing a critical backdrop for his research. His research encompasses Japan’s labor market dynamics, characterized by stagnant wages despite low unemployment, and the impact of credit booms and busts on aggregate demand. Looking ahead, he plans to expand his research into open economy contexts, supply-side spillovers, and inequality analysis.

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