Hi, my name is Gaetano and I am a Max Weber Fellow at the European University Institute. 

I am a Macroeconomist with research interests in informational frictions and learning in the context of DSGE models.

The main objective of my recent research is to demonstrate how uncertainty on expectations of others can sustain non-fundamental volatility, even if agents are assumed rational and perfectly informed on the objective features of the economy.

My Job Market Paper Rational Exuberance provides a new way to think about endogenous fluctuations driven by non-fundamental shocks. It formalizes the original Keynesian insight that instability of expectations originates from genuine uncertainty on what the others believe. In my model agents' exuberance derives from the rational incentive to predict and anticipate others' minds. And, as long as each individual "animal spirit" participates in the collective sentiment of the "market mood", complementarity of expectations can provide a rational explanation of "irrational exuberance".