Unconventional Monetary Policy and Inequality
The DEMS Economics Seminar series is proud to host
Salvatore Nisticò
(Sapienza Università di Roma)
Abstract: Cyclical inequality and idiosyncratic risk imply additional channels that amplify the transmission of persistent balance-sheet policies, through their effects on private sector’s expectations and consumption risk. Through these channels, unconventional monetary policy improves the central bank’s ability to anchor expectations and rule out endogenous instability. Moreover, they allow the central bank to optimally complement interest-rate policy in particular in response to financial shocks that expose the economy to the effective-lower-bound on the policy rate, and can promote a swifter exit from the liquidity trap.
The seminar will be in person: DEMS seminar room 2104, Building U7