Video: Heterogeneity, Monetary Policy and Economic Fluctuations (ERC Grant)
ERC Advanced Grant project by Jordi Galí (CREI, UPF and BSE)
Caring (less) for price stability may help prevent financial crises
Frédéric Boissay, Fabrice Collard, Jordi Galí, and Cristina Manea study whether the central bank should deviate from its traditional price stability objective to promote financial soundness, using a New Keynesian model augmented with capital accumulation and allowing for microfounded endogenous financial crises.
Can “Leaning Against the Wind” moderate asset price bubbles?
Jordi Galí, Giovanni Giusti and Charles N. Noussair conduct a laboratory experiment to study the effects of monetary policy on asset prices.
Forward guidance and the exchange rate
Jordi Galí finds that the impact of forward guidance on exchange rates poses a stiff challenge for existing theoretical models.
