This is a joint event with the ESM and the Department of Finance of the University of Luxembourg.
ESM-Uni.lu Lunch Seminar Prof. Federica Romei, University of Oxford
Speaker: Prof. Federica Romei
University of Oxford
DATE: Tuesday, 10 October 2023
TIME: 12.30 – 14.00
We argue that demand composition between tradable and non-tradable goods and services affects monetary policy transmission. We document at the micro level that within Eurozone countries, richer households allocate a greater share of their consumption basket to non-tradable goods. At the aggregate level, we show that non-tradable goods account for a larger share of total consumption in countries with higher income inequality. Finally, we show that output responses to identified monetary policy shocks are larger for economies with lower non-tradable consumption shares. We rationalize our micro and macro findings using a small open-economy heterogeneous-agent model with non-homothetic preferences. We then study the implications for optimal stabilization policy.
Registration is mandatory
European Stability Mechanism
6a Circuit de La Foire Internationale
Please note that cold lunch will be provided for registered participant (12h-12h30)