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Davide Romelli

@davideromelli.bsky.social

Associate Professor in Economics at Trinity College Dublin. Working on central banking, supervision and international macro. Father of twins. https://davideromelli.com/

28 Posts859 Follower1056 Folgt
Centre for Economic Policy Research@cepr.org · 11mo ago

The independence of the Federal Reserve is being tested. In February, A Athanasopoulos, D Masciandaro, & @davideromelli.bsky.social wrote for VoxEU that improvements in central bank independence yield long-lasting benefits, including reducing inflation persistence. cepr.org/voxeu/column... #EconSky

It matters even more: Central bank independence, long-run inflation, and persistence

Central bank independence has recently re-emerged as a major concern within political economy discussions. This column shows that improvements in central bank independence yield long-lasting benefits, with a significantly greater impact on inflation in the long run compared to the short run. Additionally, it shows that central bank independence reduces inflation persistence, thereby enhancing the effectiveness of monetary policy. Finally, and in contrast to much of the existing literature, it finds that the long-term effects of central bank independence on inflation are more pronounced in developing countries.

cepr.org

Financial Times@financialtimes.com · 11mo ago

The next step in the Fed governor’s case could prove pivotal in shaping the US president's ability to force out some of the central bank’s other senior officials on.ft.com/4pBkKhr

Davide Romelli@davideromelli.bsky.social · 11mo ago

📰 New paper forthcoming in Explorations in Economic History! Venice, 1619–1666 → A cautionary tale on fiscal monetization & currency depreciation. Even credible states can't escape fiscal dominance. 📜 Paper 👉 tinyurl.com/435hhsa6 📖 TL;DR → Read our VoxEU Column 👇

Credibility is not enough: Fiscal monetization and currency depreciation in early-modern Venice

This paper focuses on an early unique experiment of managed float of State-issued money, implemented in Venice between 1619 and 1666. Building on a ne…

tinyurl.com

VoxEU @ CEPR@voxeu.org · 11mo ago

Donato Masciandaro, @davideromelli.bsky.social, & Stefano Ugolini use the case of a managed float of state-issued money in Venice from 1619-1666 to show that reputation cannot indefinitely shield an international currency from the risks of fiscal dominance. cepr.org/voxeu/column... #EconSky

The figure shows the interquartile distribution of the bilateral exchange rates between the Venetian Banco ducat and each one of the 16 currencies whose data are available in more than 98% of the archival documents between 1627 and 1684. History suggests that using lax monetary policy and a weaker currency to address debt sustainability is a dangerous game. This column revisits a unique early experiment with a managed float of state-issued money in Venice between 1619 and 1666. Newly digitised exchange rate data show that even for a government with a strong fiscal reputation, credibility alone was not enough to preserve currency stability when fiscal and monetary policies lacked time consistency. The Venetian case offers a cautionary lesson for today: reputation cannot indefinitely shield an international currency from the risks of fiscal dominance.
Davide Romelli@davideromelli.bsky.social · last yr.

Pleased to see my research on central bank independence featured in this Reuters piece on political pressure on the Fed and what it means for monetary institutions worldwide: 🔗 reuters.com/markets/euro... Access the data 👉 www.cbidata.org #CentralBankIndependence #MonetaryPolicy #CBIData

Trump's Fed attacks puncture veneer of central bank independence

If U.S. President Donald Trump's public attacks on Federal Reserve Chair Jerome Powell have achieved one thing, it has been to thrust the issue of central bank independence firmly into the spotlight. But this raises the question, what does 'independence' really mean?

reuters.com

Davide Romelli@davideromelli.bsky.social · last yr.

🎙️ It was an honour to speak to @morningireland and @France24_en this week on Trump’s latest attacks on Jerome Powell & the real risks to the Fed’s independence. 📉 Undermining CBI isn’t just bad politics—it’s bad economics. 🎧 www.rte.ie/radio/radio1... 📽️ www.youtube.com/watch?v=uLKt...

7.50 Business News

Presented by Gail Conway

rte.ie

Department of Economics, Trinity College Dublin@tcdeconomics.bsky.social · last yr.

📉 Professor @davideromelli.bsky.social spoke to @rteradio1.bsky.social Morning Ireland & @france24.com about threats to the Federal Reserve Bank's independence posed by Trump's attacks on Jerome Powell. 👇 www.youtube.com/watch?v=uLKt... www.rte.ie/radio/radio1... #econsky @tcdssp.bsky.social

Jérôme Deyris@jdeyris.bsky.social · last yr.

Le thème du changement climatique est devenu central dans les discours des banques centrales. Pourquoi ? Comment ? Et avec quelles conséquences ? Éléments de réponse dans un article @france.theconversation.com, avec @davideromelli.bsky.social , E. Campiglio et S. Scalisi:

Quand les banques centrales s’emparent de la question du climat

Un tiers des discours des banques centrales aborde désormais le thème du changement climatique. Comment ces institutions, traditionnellement focalisées sur l’inflation, en sont-elles arrivées là ?

theconversation.com

Davide Romelli@davideromelli.bsky.social · last yr.

📢 Why Central Bank Independence Matters More Than Ever 📢 Recently, Christine Lagarde warned that central bank independence is under threat. Our latest VoxEU column explains why this is alarming—weakening independence leads to higher, more persistent inflation in the long run. (Thread 🧵👇)

It matters even more: Central bank independence, long-run inflation, and persistence

Central bank independence has recently re-emerged as a major concern within political economy discussions. This column shows that improvements in central bank independence yield long-lasting benefits, with a significantly greater impact on inflation in the long run compared to the short run. Additionally, it shows that central bank independence reduces inflation persistence, thereby enhancing the effectiveness of monetary policy. Finally, and in contrast to much of the existing literature, it finds that the long-term effects of central bank independence on inflation are more pronounced in developing countries.

cepr.org

VoxEU @ CEPR@voxeu.org · last yr.

Improvements in central bank independence yield long-lasting benefits, with a significantly greater impact on #inflation in the long run compared to the short run. They also reduce inflation persistence. A Athanasopoulos, D Masciandaro, @davideromelli.bsky.social cepr.org/voxeu/column... #EconSky

Graph of central bank legislative reforms, 1972-2023. Central bank independence has recently re-emerged as a major concern within political economy discussions. This column shows that improvements in central bank independence yield long-lasting benefits, with a significantly greater impact on inflation in the long run compared to the short run. Additionally, it shows that central bank independence reduces inflation persistence, thereby enhancing the effectiveness of monetary policy. Finally, and in contrast to much of the existing literature, it finds that the long-term effects of central bank independence on inflation are more pronounced in developing countries.
Manuela Moschella@manuelamoschella.bsky.social · last yr.

4/Our findings challenge the idea that central banks operate in a political vacuum. Politicians reassess and shape their oversight of the ECB Curious to know more? Reach out to us including @davideromelli.bsky.social and read the full article here: onlinelibrary.wiley.com/doi/10.1111/...

What Do Politicians Think of Technocratic Institutions? Attitudes in the European Parliament Towards the European Central Bank

Technocracy has come to be increasingly regarded as a threat to representative democracy. Significant attention has thus been recently devoted to exploring public preferences towards technocratic ins....

onlinelibrary.wiley.com

Manuela Moschella@manuelamoschella.bsky.social · last yr.

📢 Now Published in Issue! 📢 Our article on what politicians think about the ECB is now out in @jcms-eu.bsky.social We surveyed Members of the European Parliament to uncover their views on the ECB 👉 Available at onlinelibrary.wiley.com/doi/10.1111/... And a short thread here -->

What Do Politicians Think of Technocratic Institutions? Attitudes in the European Parliament Towards the European Central Bank

Technocracy has come to be increasingly regarded as a threat to representative democracy. Significant attention has thus been recently devoted to exploring public preferences towards technocratic ins....

onlinelibrary.wiley.com

Department of Economics, Trinity College Dublin@tcdeconomics.bsky.social · last yr.

Congratulations to @davideromelli.bsky.social on his selection as a member of the new Monetary Policy Expert Panel for the Committee on Economic & Monetary Affairs (ECON) at European Parliament 👏 Read more 🔽 tinyurl.com/4k7sxx9t #econsky

Monetary dialogue | ECON Policies | ECON | Committees | European Parliament

Information on monetary dialogue between ECON and the European Central Bank (ECB). Links to documents.

tinyurl.com

Jérôme Deyris@jdeyris.bsky.social · 2y ago

📊 Last week, we released our new central bank speeches database, which almost doubles the coverage of the @BIS_org database. We also released a tool to facilitate research on central bank communication: meet the #CBSpeeches explorer! Four tools for the price of one (=free!)

Davide Romelli@davideromelli.bsky.social · 2y ago

What an honour to see my paper 'Trends in Central Bank Independence: A De-Jure Perspective' cited in the ECB speech, highlighting the critical challenges facing central bank independence today. Read the speech here: www.ecb.europa.eu/press/key/da... Interested in the Paper & Data 👉 cbidata.org

Central bank independence in an era of volatility

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purch...

ecb.europa.eu

Reuters@reuters.com · 2y ago

Central bank independence is being questioned in parts of the world and greater political influence over policy could undermine their ability to keep inflation down, European Central Bank President Christine Lagarde said reut.rs/3CpbBF4