Economists from leading universities and policy institutions gathered at Lancaster University Management School (LUMS) for the 2025 edition of the Workshop on Empirical and Theoretical Macroeconomics (ETM), held on March 14–15.

Organised by Giorgio Motta, Themis Pavlidis, Stefano Soccorsi, Will Tayler, and Roy Zilberman of the Department of Economics at LUMS, the event brought together researchers from across Europe to discuss recent developments in macroeconomic theory and empirical research.

The programme featured sessions on investment frictions, inflation and uncertainty, monetary policy, international macroeconomics, and structural modelling, with contributions from institutions such as Universitat Pompeu Fabra, the University of Oxford, Banque de France, HEC Lausanne, BI Norwegian Business School, and Lancaster University.

Participants also engaged in a poster session highlighting work on climate risks, green finance, public debt, and technology shocks, featuring early-career researchers from Lancaster and other European universities.

Keynote speaker Professor Francesco Bianchi (Johns Hopkins University) delivered a talk on Smooth Diagnostic Expectations, offering a cutting-edge perspective on expectations formation and macroeconomic dynamics. His address stimulated discussion on how evolving beliefs affect economic fluctuations and policy effectiveness.

The workshop underscored the importance of continued dialogue between theoretical and empirical research in understanding modern macroeconomic challenges.

The organisers acknowledged the generous support of the Department of Economics (LUMS), the Centre for Financial Econometrics, Asset Markets and Macroeconomic Policy, the Society for Nonlinear Dynamics and Econometrics, and Timberlake Consultants.