Time: 13:00-15:00 (UK Time), Wednesday, 16 November 2022
Presenter: Prof. Pasquale Scaramozzino, SOAS University of London
Co-author: Prof. Cesare Imbriani, Sapienza University of Rome
Chair: Prof. Victor Murinde, SOAS University of London

Abstract

Monetary authorities have the advantage over the private sector because of the longevity of their institutions and their exclusive power to issue fiat money. These defining features of central banking have however been overlooked by much of the recent literature on the effects of monetary policy. Counter-cyclical demand management policies can thus be effective even when the government is at an informational disadvantage vis à vis the private sector. In a dynamic setting with overlapping generations, monetary policy can also influence capital accumulation in the long run. The key for these results is that, with incomplete private markets, the government has a richer opportunity set than the private sector thanks to its ability to implement contingent forward contracts. Access to a wider opportunity set and a longer intertemporal horizon are crucial for the conduct of monetary policy during a crisis, such as the responses to the 2008 financial crisis and to the current COVID-19 pandemic.

Presenter

Prof. Pasquale Scaramozzino

Pasquale Scaramozzino is Professor of Economics in the School of Finance and Management, SOAS University of London. He studied at the University of Rome La Sapienza and at the London School of Economics and taught at the University of Bristol, University College London and University of Rome Tor Vergata.

Co-author

Prof. Cesare Imbriani

Cesare Imbriani is Professor of Financial Policy at UniTelma Sapienza, University of Rome. He studied at the University of Napoli and at the London School of Economics and taught at the universities of Salerno, Bari, Napoli, Rome, and LUISS. He coordinated the Council of Experts of the Italian Ministry of the Treasury and was President of Sanpaolo Invest.