@galonuno.bsky.social
Head of the Monetary Policy Division, Banco de España. Fellow @cepr.org. Research associate @cemfi.es. Views are my own. www.galonuno.com
The natural interest rate (r*) is the real rate that would prevail in the long run.
The standard view in macro is that r* depends exclusively on structural factors such as productivity growth or demographics.
A short twitter 🧵 about a new paper
x.com/NunoGalo/sta...
The recent surge in inflation has led to a significant increase in the frequency of price changes. This column argues that price flexibility has an impact on the effectiveness of monetary policy. In high inflation periods, frequent price changes make monetary policy more effective in reducing inflation with less impact on economic activity. Therefore, monetary policy should be more aggressive during such periods to stabilise prices efficiently. This approach allows central banks to achieve a ‘soft landing’ with less impact on activity. Overall, central banks should adjust their strategies based on the inflation environment to optimise economic outcomes.
During periods of high #inflation, #monetarypolicy can be more effective in reducing inflation as frequent price changes lower the impact of monetary policy on economic activity.
@peterkaradi.bsky.social @galonuno.bsky.social @ernestopasten.bsky.social et al.
cepr.org/voxeu/column...
#EconSky
Bien está lo que está bien, y es importante recordarlo en estos tiempos ... movidos.
@galonuno.bsky.social lo hace aquí con gracia para algo que producimos y que es muy valioso. Tanto que se los quedan fuera.
Dedicado a aquellos de "en el sector público no se produce"
nadaesgratis.es/admin/espano...
New paper: benjaminmoll.com/challenge/
29.11.2024 17:59 — 👍 159 🔁 41 💬 3 📌 12Thank you!
25.11.2024 21:56 — 👍 1 🔁 0 💬 0 📌 0Hi, I am new here, is there any list of economists to follow? @florinbilbiie.bsky.social @benmoll.bsky.social @jfjimeno.bsky.social @fpj.bsky.social ??
25.11.2024 18:58 — 👍 2 🔁 0 💬 2 📌 0
