The CDMA was established by a direct grant from the University of St Andrews in 2003. It runs an annual conference and the School frequently hosts macroeconomists as seminar speakers. Its affiliated members are Faculty members at St Andrews and elsewhere with interests in the broad area of dynamic macroeconomics. Its international Advisory Board comprises a group of leading macroeconomists and, ex officio, the University's Principal.

The Centre has a programme of research centred on macroeconomic theory and policy; particularly the broad area of dynamic macroeconomics. It is currently engaged in a number of specific research projects and, in general, aims to foster research in the following broad areas:

Role of learning and expectations in macroeconomic theory and policy;

Impact of (fiscal and monetary) policy changes in macroeconomic models with different expectation schemes;

Effect of heterogenous expectations in macroeconomic models;

Expectational models to explain financial market volatility, bubbles, and crashes;

The macroeconomics of financial globalisation i.e. the connections between international financial markets, the real macro economy and economic policy;

Formulation of optimal monetary policy in monetary models and the impact of relative price distortions on inflation persistence;

Understanding models with state dependent pricing;

Analyzing the impact of financial factors on the long-run growth of the UK economy, from both a historical and a theoretical perspective;

Linds between governance and corruption;

Study of New Keynesian DSGE models with financial frictions;

The use of dynamic general equilibrium models with imperfect competition and nominal rigidities in understanding open economy macroeconomic policy questions; and

Sovereign debt crises from game theoretical and political economy aspects.