Madrid macro conference targets firm networks and labor dynamics
Academic researchers gather in Cercedilla on October 8–9, 2026, for the second Madrid Macro Mountain Conference hosted by Banco de España. The two-day program addresses production networks, worker flows, firm productivity, and fiscal transmission mechanisms.
From production networks to inside money
The conference opens with sessions on human capital and labor market equilibrium, followed by research on firm dynamics and investment networks.
In the afternoon, researchers address dynamic production networks, disaster planning, and the allocative effects of zombie lending, featuring contributions from Galo Nuño and Gianmarco Ruzzier.
The first day concludes with a keynote address by José Víctor Ríos-Rull from the University of Pennsylvania, who presents a framework on inside money and credit without sticky prices.
The second day turns to household decisions, marriage markets, and firm life-cycle dynamics, before closing with work by Henrique Basso and co-authors on the idea multiplier in government spending.
Micro frictions meet macro models
Hosted at the Banco de España residence in the Guadarrama mountains, the annual workshop brings together central bank economists and scholars from institutions including CEMFI, Carlos III, and ESCP.
Parallel poster sessions highlight emerging research on monetary surprises, landlord concentration, and gender gaps.
By structuring discussions around granular micro data and network structures, the event explores how structural frictions alter macroeconomic stabilization tools.
Granular models, distant decisions
The agenda highlights a welcome shift toward granular network mechanics and firm heterogeneity.
Yet many models stay purely theoretical, offering little immediate guidance for rate setters.
Bridging the gap to actual policy execution remains the critical challenge for this work.
Source: II Madrid Macro Mountain Conference 2026
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