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The Cambridge-INET Institute


From Firms to the Aggregate Economy: The Role of Financial Frictions Mini Conference

Firms financial conditions have been at the center of economic research over the last few decades. It is a key determinant of firms' investment and labor decisions, which will then affect the aggregate productivity and therefore economic development. Revisiting this subject becomes of special importance during the current pandemic. The measures undertaken by governments to control the Covid-19 pandemic will cause financial distress in many firms and sectors and thus the aggregate economy.

The conference tackles several mechanisms at which financial frictions affect firms. In a nutshell, Adriano A. Rampini will talk about the interaction between the portfolio of capital and debt and how it eases the finance of the production process. Sara Moreira will focus on how financial frictions interact with investment in innovation. Finally, Nicholas Bloom will show how the financial frictions interact with the uncertainty carried out during the production process. All of them affect decisions at the firm-level, which translate into large consequences for the aggregate economy.

Organised by: Dr. Miguel Ferreira, Dr. Juan Carlos Ruiz Garcia and Prof. Vasco Carvalho

Event Date: Tuesday 2nd March 2021

Time: 03:45pm - 06:30pm

Event Contact: Marion Reusch -

Nicholas Bloom (Stanford University)
Sara Moreira (Kellogg School of Management
Northwestern University) and Adriano A. Rampini (Fuqua School of Business
Duke University)

See programme for full details

Click here to register

The deadline for registration is 4.00pm on 1st of March 2021



Aggregate Economy