The World Economy Laboratory

The World Economy Laboratory (WEL) is a research center at the Department of Economics of the Massachusetts Institute of Technology. WEL was established by Stanley Fischer and Rudi Dornbusch in January of 1992. Rudi Dornbusch directed its efforts until his death in 2002. The center is now co-directed by Olivier Blanchard and Ricardo Caballero.

The purpose of the World Economy Laboratory (WEL), founded by the Economics Department in 1992, is to strengthen the links between the department and policy makers, central banks, and business economists. It is organized around two programs.  The first MIT-WEL, aims at developing relations with business economists, by strengthening the links between the MIT Department of Economics, policy makers, and business leaders. It is organized around two or three small annual meetings on specific topics of mutual interest. In the recent past, topics have included structural reforms in Europe, economic developments in India, and international liquidity. Recent meetings have taken place in New York, London, and Cambridge.

The second, the Central Banks–MIT Research Network, was started in 2006 and aims at developing relations with central banks. It finances policy-relevant research by students and junior faculty in the department. It is organized around one annual meeting in Cambridge, and visits by central bank researchers to the department. The working group environment of the meetings is aimed at discussing policy issues at a relatively technical level. The meetings are attended by the heads of research of many central banks around the world, as well as faculty, and students working on international finance and macroeconomics policy issues.

WEL is financed by donations and by membership contributions to each of the two programs. The funds are used to organize the meetings, and to support policy-oriented research by junior faculty and students.