ROMA (ITALPRESS) – “The shocks of the offer represent an old challenge for monetary policy. Today, however, they are becoming more frequent, more persistent and more closely intertwined with the structural changes of the global economy. In this fluid context, central banks must continue to improve the way they interpret shocks, assess their transmission and make decisions under uncertainty.” Thus the governor of the Bank of Italy, Fabio Panetta, at the final conference of the Network ChaMP (Challenges for Monetary Policy Transmission in a Changing World).
“Money policy must adapt to a changing economy. This requires investment in new forms of knowledge. During the pandemic, epidemiology became part of the political debate. Today, computer science, political science, climate science and energy economy are increasingly an integral part of the instruments available to central banks. This applies even more to research. The ChaMP network has taken this challenge seriously from the beginning. It was created to study the ‘waves for the transmission of monetary policy in a changing world’. A world that is changing faster than expected“, continues.
“I’m sure the network has laid the foundations for collaborations that will continue to bear fruit over the years to come. Many of these collaborations will be interdisciplinary. Economists and not economists will have to collaborate to understand a future that remains uncertain, but that is approaching quickly”, continues Panetta. “As central bankers, long-term thinking means maintaining our mandate well, while adapting our analysis to the context in which this mandate must be implemented,” the Governor of Bankitalia concludes.
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(ITALPRESS).
