Gropp studied economics at the University of Freiburg and the University of Wisconsin, Madison. He obtained his Doctor of Philosophy in economics from the University of Wisconsin in 1994.
His fields of research cover financial economics, macroeconomics, corporate finance as well as money and banking. He worked for the International Monetary Fund in Washington, District of Columbia from 1994 to 1999 and for the European Central Bank from 1999 to 2007, most recently as Deputy Head of the Financial Research Division. After that, Gropp was professor of financial economics and taxation at European Business School University Wiesbaden until 2012.
From 2012 to 2014, he held a Chair of Sustainable Banking and Finance at the House of Finance, Goethe University Frankfurt am Main.
Since November 2014, Gropp has been President of the v Halle Institute for Economic Research and professor of economics at Otto-von-Guericke University Magdeburg. He serves as a consultant for the Bank of Canada and the Federal Reserve Bank of San Francisco.
Fellow, Center for Financial Studies (CFS), Frankfurt am Main Visiting Professor, University of Amsterdam (2014) Visiting Financial Economist, Federal Reserve Bank of San Francisco (2012) Duisenberg Fellow, European Central Bank, Frankfurt am Main (2012).
Member of Econometric Society, European Economics Association, American Economic Association.