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Éric Monnet

Éric Monnet is a macroeconomist specialized in the history of central banks and financial systems. Eric obtained his Phd from the Paris School of Economics and has held visiting positions at Columbia University and Rutgers University.

He is currently a Post-doctoral fellow in monetary economics at Ghent University and a visiting fellow at Bruegel.
Eric is also part of the editorial committee of La Vie des Idées and Tracés.

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Working Paper

Europe between financial repression and regulatory capture

Highlights The financial crisis modified drastically and rapidly the European financial system’s political economy, with the emergence of two competing narratives. First, government agencies are frequently described as being at the mercy of the financial sector, routinely hijacking political, regulatory and supervisory processes, a trend often referred to as “capture”. But alternatively, governments are portrayed […]

By: Éric Monnet, Stefano Pagliari and Shahin Vallée Topic: Banking and capital markets Date: July 9, 2014
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Blog Post

Blogs review: Asset prices and monetary policy redux

What’s at stake: Federal Reserve Governor Jeremy Stein gave serious consideration to the idea that monetary policy has a role to play in managing financial stability (read asset prices) in a speech titled “Overheating in Credit Markets: Origins, Measurement, and Policy Responses” given last week at a conference hosted by the St. Louis Fed. Governor Stein provided evidence that risk was building in certain segments of financial markets and discussed policy tools that go beyond countercyclical macroprudential regulation or the simple use of the Federal Funds rate to address these risks.

By: Jérémie Cohen-Setton and Éric Monnet Topic: Global economy and trade Date: February 15, 2013
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Blog Post

Blogs review: The Monetary Regime and the drawbacks of NGDP targeting

What’s at stake: There has been much ink spilt (except maybe in the eurozone) over the last few years about the need to move away or at least complement the flexible inflation-targeting framework so that central banks can create expectations of future expansionary policy in a liquidity trap without changing its long-run goals. One idea – Nominal GDP targeting – has gathered most attention. After qualifying the idea as “powerful” and raising expectations of a possible future adoption, the Bank of England governor-designate Mark Carney reversed course and said that he was “far from convinced” by the idea in front of the Treasury select committee yesterday. While he didn’t lay out precisely the intellectual reasons for that change of heart, we’ve tried to put together some of the reasons put forward against NGDP targeting.

By: Jérémie Cohen-Setton, David C. Saha and Éric Monnet Topic: Macroeconomic policy Date: February 8, 2013
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Blog Post

Blogs review: Wallace Neutrality and Balance Sheet Monetary Policy

What’s at stake: The media has widely echoed that Michael Woodford – arguably the top monetary economist in the world – came out in support of Nominal GDP targeting in his speech at the Jackson Hole Economic Symposium. But Woodford’s 96 pages paper is much more than that as it provides certainly the best non-technical discussion of policy options available to central banks at the ZLB. The paper discusses forward guidance policies as well as balance-sheet policies, in which the central bank varies either the size or the composition of its balance sheet. In this review, we focus on the latter as Woodford’s paper provides a useful complement to understand the ongoing blogosphere discussion about Wallace neutrality – an economics proposition due to Neil Wallace (1981) asserting that, in certain environments, alternative size and composition of the CB balance sheet have no effect.

By: Jérémie Cohen-Setton and Éric Monnet Topic: Global economy and trade Date: September 10, 2012