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Papers by Ignazio Angeloni
We construct a set of indicators to measure the policy-making role of the European Union (Europea... more We construct a set of indicators to measure the policy-making role of the European Union (European Council, Parliament, Commission, Court of Justice, etc.), in a selected number of policy domains. Our goal is to examine the division of prerogatives between European institutions and national ones, in light of the implications of normative models and in relation to the preferences of
Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of... more Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of new data sets, we propose a comprehensive description of how monetary policy affects the euro area economy. We focus mainly on three questions: (1) what are the stylized facts concerning the transmission of monetary policy for the area as a whole and for individual
We examine the euro area monetary policy transmission process using post-1999 data, with two main... more We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - EMU and, if so, is it becoming homogeneous across countries. Given the data limitations, we concentrate on three blocks of transmission: the banking, interest-rate and asset-market channels. We find evidence that the transmission
We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in th... more We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the predominant driver of output changes, while in the U.S.
We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE ... more We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and Basel-like capital ratios. In equilibrium, bank leverage depends
This report presents results from a research project developed by the European Central Bank and t... more This report presents results from a research project developed by the European Central Bank and the 12 National Central Banks of the Eurosystem on the persistence of inflation in the euro area and its member countries. The analysis, conducted by a team called the Inflation Persistence Network (IPN), focuses on measuring and comparing patterns of price setting and inflation persistence
American Economic Review, 2005
We model an international union as a group of countries deciding to centralize the provision of p... more We model an international union as a group of countries deciding to centralize the provision of public goods, or policies, that generate externalities across union members. The trade-off between the benefits of coordination and the loss of independent policymaking endogenously determines size, composition, and scope of the union. Policy uniformity reduces the size of the union, may block the entry
SSRN Electronic Journal, 2000
We model an international union as a group of countries deciding together on the provision of pub... more We model an international union as a group of countries deciding together on the provision of public goods or policies that generate spillovers across members. The trade-off between benefits of coordination and loss of independent policy-making endogenously determines size, composition and scope of the union. Policy uniformity reduces the union’s size, may block enlargement processes and induce excessive centralization. We study flexible rules with non-uniform policies that reduce these inefficiencies focusing on arrangements relevant in the context of existing unions or federal states, like enhanced cooperation, subsidiarity, federal mandates and earmarked grants.
The B.E. Journal of Macroeconomics, 2007
In my contribution, I will review some specific aspects of uncer- tainty and economic change asso... more In my contribution, I will review some specific aspects of uncer- tainty and economic change associated with the creation of the European Central Bank (ECB)—as a new institution and a new central bank responsible for the conduct of the single monetary policy in a new economic entity: the euro area. Some of the relevant questions are: How has the ECB
We study the organization of federations - or international unions - which decide together the pr... more We study the organization of federations - or international unions - which decide together the provision of certain public goods. The benefit of centralization depends on the internalization of the spillovers, that of decentralization on the adaptability to local differences. We individuate as an optimal institutional design a form of fiscal federalism based on decentralization of expenditures and a system of subsidies and transfers between countries. Since this solution can be politically unfeasible, we study institutional compromises between a centralized federation and a decentralized one. 'Flexible unions' and federal mandates in which both the state and federal levels are involved in providing public goods are typically superior to complete centralization and politically feasible. Finally, we study the effects of a qualified majority voting rule in a centralized system: we find that it can be a useful device to correct a bias toward 'excessive' union level a...
Monetary transmission evidence SUMMARY We examine the euro area monetary policy transmission proc... more Monetary transmission evidence SUMMARY We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - economic and monetary union (EMU) and, if so, is it becoming homogeneous across countries? Given the data limitations, we concentrate on three components of the transmission mechanism: the banking, the interest rate and the asset market channels. We find evidence that the transmission through banks has become more potent and homogeneous across countries. On the financial market channels, our evid- ence is somewhat weaker but suggestive. The interest rate channel appears to have changed even before EMU, and now affects national economies in a broadly similar way. The asset market channel (proxied by the stock market effects of monetary policy) also seems to work rather homogeneously across national markets (no comparison with pre-EMU is available here). A positive answer to both questions ra...
Scottish Journal of Political Economy, 2003
Open Economies Review, 1996
Journal of the European Economic Association, 2006
Journal of Policy Modeling, 1994
ABSTRACT This paper discusses the relevance of cross-border deposits (CBDs) for the stability of ... more ABSTRACT This paper discusses the relevance of cross-border deposits (CBDs) for the stability of the relation between monetary aggregates and nominal GDP in the five largest EEC countries. The importance of the issue derives from two facts. Firstly, CBDs have recently increased sharply in many EEC countries, casting doubts on the adequacy of existing monetary aggregates that exclude them. Secondly, current monetary policy coordination within the EEC emphasizes the role of quantitative monetary indicators. The analysis is developed in terms of the “information content” of alternative money definitions (including or excluding selected subsets of CBDs), derived from a multicountry simultaneous system of money demand equations. We show that in the most recent period, traditional broad money aggregates are dominated by alternative money definitions that include CBDs, such as those based on the residency of the holder or on the currency of denomination. We also use the model to test hypotheses concerning multicountry aggregation of money demands.
Journal of Money, Credit, and Banking, 2003
... Ignazio Angeloni European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main Germany i... more ... Ignazio Angeloni European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main Germany ignazio.angeloni@ecb.int Anil Kashyap University of Chicago Graduate School of Business 1101 E. 58th Street Chicago, IL 60637 and NBER anil.kashyap@gsb.uchicago.edu ...
We construct a set of indicators to measure the policy-making role of the European Union (Europea... more We construct a set of indicators to measure the policy-making role of the European Union (European Council, Parliament, Commission, Court of Justice, etc.), in a selected number of policy domains. Our goal is to examine the division of prerogatives between European institutions and national ones, in light of the implications of normative models and in relation to the preferences of
Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of... more Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of new data sets, we propose a comprehensive description of how monetary policy affects the euro area economy. We focus mainly on three questions: (1) what are the stylized facts concerning the transmission of monetary policy for the area as a whole and for individual
We examine the euro area monetary policy transmission process using post-1999 data, with two main... more We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - EMU and, if so, is it becoming homogeneous across countries. Given the data limitations, we concentrate on three blocks of transmission: the banking, interest-rate and asset-market channels. We find evidence that the transmission
We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in th... more We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the predominant driver of output changes, while in the U.S.
We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE ... more We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and Basel-like capital ratios. In equilibrium, bank leverage depends
This report presents results from a research project developed by the European Central Bank and t... more This report presents results from a research project developed by the European Central Bank and the 12 National Central Banks of the Eurosystem on the persistence of inflation in the euro area and its member countries. The analysis, conducted by a team called the Inflation Persistence Network (IPN), focuses on measuring and comparing patterns of price setting and inflation persistence
American Economic Review, 2005
We model an international union as a group of countries deciding to centralize the provision of p... more We model an international union as a group of countries deciding to centralize the provision of public goods, or policies, that generate externalities across union members. The trade-off between the benefits of coordination and the loss of independent policymaking endogenously determines size, composition, and scope of the union. Policy uniformity reduces the size of the union, may block the entry
SSRN Electronic Journal, 2000
We model an international union as a group of countries deciding together on the provision of pub... more We model an international union as a group of countries deciding together on the provision of public goods or policies that generate spillovers across members. The trade-off between benefits of coordination and loss of independent policy-making endogenously determines size, composition and scope of the union. Policy uniformity reduces the union’s size, may block enlargement processes and induce excessive centralization. We study flexible rules with non-uniform policies that reduce these inefficiencies focusing on arrangements relevant in the context of existing unions or federal states, like enhanced cooperation, subsidiarity, federal mandates and earmarked grants.
The B.E. Journal of Macroeconomics, 2007
In my contribution, I will review some specific aspects of uncer- tainty and economic change asso... more In my contribution, I will review some specific aspects of uncer- tainty and economic change associated with the creation of the European Central Bank (ECB)—as a new institution and a new central bank responsible for the conduct of the single monetary policy in a new economic entity: the euro area. Some of the relevant questions are: How has the ECB
We study the organization of federations - or international unions - which decide together the pr... more We study the organization of federations - or international unions - which decide together the provision of certain public goods. The benefit of centralization depends on the internalization of the spillovers, that of decentralization on the adaptability to local differences. We individuate as an optimal institutional design a form of fiscal federalism based on decentralization of expenditures and a system of subsidies and transfers between countries. Since this solution can be politically unfeasible, we study institutional compromises between a centralized federation and a decentralized one. 'Flexible unions' and federal mandates in which both the state and federal levels are involved in providing public goods are typically superior to complete centralization and politically feasible. Finally, we study the effects of a qualified majority voting rule in a centralized system: we find that it can be a useful device to correct a bias toward 'excessive' union level a...
Monetary transmission evidence SUMMARY We examine the euro area monetary policy transmission proc... more Monetary transmission evidence SUMMARY We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - economic and monetary union (EMU) and, if so, is it becoming homogeneous across countries? Given the data limitations, we concentrate on three components of the transmission mechanism: the banking, the interest rate and the asset market channels. We find evidence that the transmission through banks has become more potent and homogeneous across countries. On the financial market channels, our evid- ence is somewhat weaker but suggestive. The interest rate channel appears to have changed even before EMU, and now affects national economies in a broadly similar way. The asset market channel (proxied by the stock market effects of monetary policy) also seems to work rather homogeneously across national markets (no comparison with pre-EMU is available here). A positive answer to both questions ra...
Scottish Journal of Political Economy, 2003
Open Economies Review, 1996
Journal of the European Economic Association, 2006
Journal of Policy Modeling, 1994
ABSTRACT This paper discusses the relevance of cross-border deposits (CBDs) for the stability of ... more ABSTRACT This paper discusses the relevance of cross-border deposits (CBDs) for the stability of the relation between monetary aggregates and nominal GDP in the five largest EEC countries. The importance of the issue derives from two facts. Firstly, CBDs have recently increased sharply in many EEC countries, casting doubts on the adequacy of existing monetary aggregates that exclude them. Secondly, current monetary policy coordination within the EEC emphasizes the role of quantitative monetary indicators. The analysis is developed in terms of the “information content” of alternative money definitions (including or excluding selected subsets of CBDs), derived from a multicountry simultaneous system of money demand equations. We show that in the most recent period, traditional broad money aggregates are dominated by alternative money definitions that include CBDs, such as those based on the residency of the holder or on the currency of denomination. We also use the model to test hypotheses concerning multicountry aggregation of money demands.
Journal of Money, Credit, and Banking, 2003
... Ignazio Angeloni European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main Germany i... more ... Ignazio Angeloni European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main Germany ignazio.angeloni@ecb.int Anil Kashyap University of Chicago Graduate School of Business 1101 E. 58th Street Chicago, IL 60637 and NBER anil.kashyap@gsb.uchicago.edu ...