The research areas of the Institute for Economic Policy are listed here.
1. European Monetary Integration and International Role of the Euro
We examine the effects of the European Central Bank's monetary policy on the monetary stability and the stability of the European Union, also exploring the implications for the international role of the euro.
2. East Asian Exchange Rate Policies
Traditionally, there has been an informal dollar standard in East Asia, as most countries in the region (including Japan) stabilize their exchange rates against the U.S. dollar. Meanwhile, the leading role of the dollar in the region is being challenged, in particular by China. It is analyzed to what extent the Chinese renminbi can become the leading anchor and reserve currency in the region.
3. Over-Investment Theory and Financial Crises
Speculative bubbles and crises have led worldwide to a drop in interest rates to zero, high financial market instability and an inflation of central bank balance sheets. Based on the (monetary) overinvestment theory of Hayek and Mises, the role of monetary policy for boom and crisis cycles and for long-term economic stability is examined.