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.
Jordi Galí, Giovanni Giusti and Charles N. Noussair conduct a laboratory experiment to study the effects of monetary policy on asset prices.
Jordi Galí finds that the impact of forward guidance on exchange rates poses a stiff challenge for existing theoretical models.
The idea of financing a fiscal stimulus with money creation has long been a taboo and disregarded as a policy option. But is this justified? Jordi Galí investigates the effects of a government engaging in just such a stimulus as compared with a debt-financed stimulus.