On October 11-12 the second edition of the Annual Workshop of the ESCB Research Cluster 1 on Monetary Economics took place at Banca d’Italia.
The workshop featured presentations of high-quality papers on a wide variety of topics focused largely on the determinants and effects of low interest rates, the impact of both conventional and unconventional monetary policy measures on financial markets, and the interaction between monetary, fiscal and macroprudential policies.
Many contributions analysed these issues from an empirical perspective, using both macroeconomic and microeconomic data, as well as state-of-the-art econometric techniques. Other analyses adopted a theoretical approach, studying issues related to the transmission mechanisms of monetary policy, its macroeconomic and financial impact, and its optimal design in environments characterized by uncertainty, heterogeneity, financial market imperfections or international spill-overs.
The workshop also benefitted from the participation of two world-leading scholars on monetary economics, such as Mirko Wiederholt (Science Po) and Pierpaolo Benigno (LUISS University), who presented their work on households and firms’ inflation expectations at the zero lower bound and on a central bank theory of price level determination, respectively.