Foreword – The crisis, ten years after: Lessons learnt for monetary and financial research

Andreas Beyer (), Benoit Coeuré and Caterina Mendicino

Economie et Statistique / Economics and Statistics, 2017, issue 494-495-496, 45-64

Abstract: [eng] Ten years after the global and European financial crises, significant progress has been made both in financial and economic research to address the shortcomings of mainstream modelling frameworks used to inform monetary and financial policymaking. This article first reviews the progress made in the field of econometric modelling, namely more elaborated financial sectors, partial non-linearity, addressing the effective lower bound for interest rates, and dealing with heterogeneity across countries and economic agents. We then describe how such progress has helped assessing the impact of unconventional monetary policy and the interaction between monetary and prudential policies, also building on the extensive use of micro‑data. We conclude that more research remains needed on the transmission of negative rates and their financial stability repercussions, and to understand better central bank communication (including forward guidance on monetary policy) by introducing elements of bounded rationality. Research remains also needed on building models with more heterogeneous agents, given the relevance of heterogeneity for the transmission of monetary policy and the rising importance of inequality in the broader policy discussion.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.insee.fr/en/statistiques/fichier/31350 ... ure-Mendicino-EN.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nse:ecosta:ecostat_2017_494-495-496_4

Access Statistics for this article

Economie et Statistique / Economics and Statistics is currently edited by Dominique Goux

More articles in Economie et Statistique / Economics and Statistics from Institut National de la Statistique et des Etudes Economiques (INSEE) Contact information at EDIRC.
Bibliographic data for series maintained by Veronique Egloff ().