Søren Hove Ravn

I am a macroeconomist with an interest in business cycle fluctuations, the connection between financial markets and the macroeconomy, as well as economic policy.

I am a member of the Economic Policy Research Unit (EPRU) and the Macro Reading Group at the Department of Economics.

An important part of my work is focused on the non-linearities associated with the spillovers from financial markets to the real economy. In ongoing work, for example, my coauthors and I investigate the macroeconomic implications of occasionally binding credit constraints. We show that when credit constraints sometimes become non-binding, this leads to a negatively skewed business cycle. In addition, this non-linearity poses a serious challenge for macroprudential regulators. In my PhD dissertation, I studied another type of non-linearity. I first showed empirically that the Federal Reserve displayed an asymmetric reaction to stock price movements in the run-up to the recent financial crisis: A drop in stock prices increased the probability of a subsequent interest rate cut, whereas an increase in stock prices led to no monetary policy reaction. In a related, theoretical paper, I then showed that such a policy may lead to an increase in asset price volatility via expectations-driven asset price booms.

Primary fields of research

• Macroeconomics
• Linkages between financial markets and the real economy
• Monetary and fiscal policy

Current research

• Macroeconomic effects of financial liberalization

Companies

• Associate Professor Of Economics Københavns Universitet - University of Copenhagen (2019)
• Assistant Professor University of Copenhagen (2014 — 2019)
• Visiting Faculty The London School of Economics and Political Science (LSE) (2018 — 2018)
• Economist, Research Division Danmarks Nationalbank (2013 — 2014)
• PhD Scholar Danmarks Nationalbank (2009 — 2012)
• Visiting PhD student University of Oxford (2010 — 2011)
• Visiting PhD student Bocconi University (2010 — 2010)
• Teaching Assistant University of Copenhagen (2008 — 2009)
• Research Assistant CEPOS (2008 — 2008)

Education

• PhD in Economics Københavns Universitet / University of Copenhagen (2009 — 2013)
• Cand.polit. Københavns Universitet - University of Copenhagen (2004 — 2010)
• Northwestern University (2007 — 2008)
• CEPOS University (2006 — 2006)