3rd. Global Conference Business Cycles - Edward C Prescott

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FGV/EPGE - Brazilian School of Economics and Finance - in partnership with Vale, performed in 09 and 10 May 3rd. Global Conference - Business Cycles. The conference brought together world experts in economic fluctuations and business cycles. The event presented the most recent research about the topics, evaluating the impact of economic cycles on the global economic scenario and lessons that emerging countries can draw from these experiences.

The conference was attended by the Nobel Laureates in Economics Edward C. Prescott (Federal Reserve Bank of Minneapolis and professor at the University of Arizona) and Chris Sims (professor at Princeton University). In his presentation, held on May 9, Prescott explained how is possible to replicate situations ranging from the economic growth of China to the 2008 financial crisis without modeling and using only productivity shocks. The research methods of professor Prescott are behind the new theories about Business Cycles.

Chris Sims demonstrated in his presentation on May 10 morning , his attempts to assess the ability of current macroeconomic models to predict crisis by introducing new variables. However, he said, it is still necessary to improve such models. "So far our results for prediction are not so good," he said. Sims also believes that monetary policies that restrict liquidity in times of crisis can lead to financial stress.

The 3rd. Global Business Cycles Conference took place at the Fundação Getulio Vargas in Rio de Janeiro.