Wednesday, November 18, 2020
Thursday, November 19, 2020

In cooperation with

Monetary policies worldwide are currently facing a number of challenges, including how to deal with the low level of nominal and real interest rates, how to deal with a persistent undershooting of inflation targets, how to align inflation expectations with the inflation target, how to deal with a changing inflation formation process, and how to gauge changes in the transmission of monetary policy impulses to the economy and inflation. Where actually is the effective lower bound of interest rates? How to incorporate unconventional policy tools such as outright asset purchases and forward guidance in the measurement of the policy stance and in the assessment of remaining policy scope? What do equilibrium and policy rates close to the effective lower bound imply for optimal monetary policy strategies, including the definition of price stability or the inflation aim? How has the post-crisis monetary policy toolbox performed; how should it develop further in the future? These and other topics are currently also reflected upon in global central banks’ ongoing monetary policy strategy reviews. The workshop will address several of these issues, combining insights from cutting edge academic research and policy makers’ practical experiences.

Scientific committee
Jakob De Haan, SUERF President; Ernest Gnan, OeNB and SUERF Secretary General; Giuseppe Grande, Banca d”Italia, Mario Pietrunti, Banca d”Italia, Stefano Siviero, Banca d”Italia, and Frank Smets, ECB and SUERF Fellow


Wednesday, 18 November 2020
Welcome address
Daniele Franco, Senior Deputy Governor, Bank of Italy
Keynote Lecture

Should the ECB Adjust its Strategy in the Face of a Lower r*?

Jordi Galí, CREI, Universitat Pompeu Fabra, Barcelona GSE presentation

Session 1 - Strategy

Paper 1 - Hitting the Elusive Inflation Target

Leonardo Melosi, EUI, Chicago Fed, CEPR, (paper with Francesco Bianchi and Mathias Rottner) presentation

Discussant:  Flora Budianto, Economist, BIS – Presentation

Paper 2 - Expectations-Driven Liquidity Traps: Implications for Monetary and Fiscal Policy

Sebastian Schmidt, Economist, ECB (paper with Taisuke Nakata) presentation

Discussant:  Juan Passadore, Assistant Professor, EIEF – Presentation

Chair: Ernest Gnan, Counsel to the Board and Head, Economic Analysis Division, OeNB I SUERF Secretary General
Wrap up of the Day 1 and Close
Thursday, 19 November 2020
Session 2: Structural Change/Transmission

Paper 3 - Corporate Leverage and Monetary Policy Effectiveness in the Euro Area

Martina Cecioni, Banca d’Italia, (paper with Simone Auer and Marco Bernardini) presentation

Discussant:  Carlo Altavilla, Head of Section, European Central Bank – Presentation

Paper 4 - Bank intermediation activity in a low interest rate environment

Leonardo Gambacorta, Head, Innovation and the Digital Economy, BIS (paper with Michael Brei and Claudio Borio) presentation

Discussant:  Luisa Corrado, Professor of Economics, University of Rome Tor Vergata – Presentation

Chair: Frank Smets, Director General Economics, European Central Bank I SUERF Fellow
Session 3: Tools/Instruments

Paper 5 - Monetary policy options in a ‘low for long’ era

Richard Harrison, Bank of England, (paper with Martin Seneca and Matt Waldron) presentation

Discussant:  Andreas Tischbirek, Assistant Professor of Economics, HEC Lausanne – Presentation

Paper 6 - On the negatives of negative interest rates and the positives of exemption thresholds

Romina Ruprecht, University of Basel, (paper with Aleksander Berentsen, University of Basel and FRB St. Louis, and Hugo van Buggenum, Tilburg University) presentation

Discussant:  Kilian Rieder, Research Economist at the Oesterreichische Nationalbank –Presentation

Chair: Stefano Siviero, Deputy Director General for Markets and Payment Systems, Bank of Italy
Wrap up of the Day 2 and Close