Damiano Sandri

Work in Progress

• "Keep Calm and Bank on: Panic-Driven Bank Runs and the Role of Public Communication," with F. Grigoli, Y. Gorodnichenko, and O. Coibion, NBER WP 31644, CEPR DP 18448 , BIS WP 1119. VoxEU ProMarket

News about a large bank failure–such as SVB–increases the risk of other bank runs but some types of public communication can reassure depositors.

• "Monetary Policy and Credit Card Spending," with F. Grigoli, CEPR DP 17751. VoxEU

Credit card data show that monetary policy transmits to consumer spending quite rapidly.

• "Public Debt and Household Inflation Expectations," with F. Grigoli, CEPR DP 18010. VoxEU

When informed about high public debt levels, people increase inflation expectations, especially if they have little confidence in the central bank.

• "Monetary Policy Transmission in Emerging Markets: Old Concerns, New Evidence," with A. Checo and F. Grigoli.

Using a new set of monetary policy shocks, we find that monetary policy wields considerable traction on financial and macroeconomic conditions in emerging markets.

Journal Articles

• "Dampening Global Financial Shocks: Can Macroprudential Regulation Help (more than Capital Controls)?" with K. Bergant, F. Grigoli, and N. Hansen, Journal of Money, Credit and Banking, accepted . VoxEU SUERF

Macroprudential regulation can considerably strengthen emerging markets' resilience to global financial shocks.

• "The Global Financial Cycle and Liquidity Management," with O. Jeanne, Journal of International Economics, forthcoming.

Rather than using capital controls to restrict capital inflows, emerging markets can weather the global financial cycle by supporting offsetting capital outflows.

• "The Open-Economy ELB: Contractionary Monetary Easing and the Trilemma," with P. Cavallino, Journal of International Economics, 140: 103691, 2023.

Contrary to Mundell Trilemma, capital flows may undermine monetary independence even in countries with flexible exchange rates.

• "FX Intervention to Stabilize or Manipulate the Exchange Rate? Inference from Profitability," Journal of International Money and Finance, 131: 102786, 2023. SUERF

FX intervention in Brazil has been profitable in expectation suggesting that it has been used to stabilize rather than manipulate the exchange rate.

• "Idiosyncratic Shocks and Aggregate Fluctuations in an Emerging Market," with F. Grigoli and E. Luttini, Journal of Development Economics, 160: 102949, 2023.

Idiosyncratic shocks considerably affect aggregate fluctuations even in an emerging market, although somewhat less than in advanced economies. 

• "Mobility under the COVID-19 Pandemic: Asymmetric Effects across Gender and Age," with F. Caselli, F. Grigoli, and A. Spilimbergo, IMF Economic Review, 70: 105-138, 2022. VoxEU 

Telecom data show that COVID-19 lockdowns impacted women and the young more strongly.

• "Protecting Lives and Livelihoods with Early and Tight Lockdowns," with F. Caselli and F. Grigoli, The B.E. Journal of Macroeconomics, 22(1): 241-268, 2022. VoxEU

Stringent and rapidly adopted lockdowns considerably lowered the spread of COVID-19, paving the way to faster economic recoveries.

• "Optimal Reserves in Financially Closed Economies," with O. Jeanne, Journal of International Money and Finance, 104: 102178, 2020.

Policymakers should place more emphasis on how to use reserves in response to shocks than on the optimal reserve target. 

• "Dealing with Systemic Sovereign Debt Crises: Fiscal Consolidation, Bail-ins or Bail-outs?," IMF Economic Review, 66(4): 665-693, 2018. VoxEU

International bail-outs are socially beneficial to resolve a systemic country's sovereign debt crisis but should be coupled with more stringent fiscal consolidation requirements. 

• "Unconventional Monetary Policies in the Euro Area, Japan and the UK," with G. Dell'Ariccia and P. Rabanal. Journal of Economic Perspectives, 32(4): 147-172, 2018. Brookings Event

Unconventional monetary policies in Euro Area, Japan, and UK have been effective in preserving market functioning and compressing long-term interest rates. 

• "Capital Controls or Macroprudential Regulation?," with A. Korinek, Journal of International Economics, 99(s1): 27-42, 2016.

To manage externalities associated with exchange rate fluctuations, it is preferable to use both macroprudential regulation and capital controls..

• "Growth and Capital Flows with Risky Entrepreneurship," American Economic Journal: Macroeconomics, 6(3): 102-123, 2014.

Capital outflows during growth accelerations in emerging markets can be explained by entrepreneurs' precautionary savings. 

• "Financial Crises and Recapitalizations," with F. Valencia, Journal of Money, Credit and Banking, 45(s2): 59-86, 2013.

Bank recapitalizations after large net worth losses can deliver welfare gains as large as those from eliminating business cycle fluctuations.

• "Macro-Hedging for Commodity Exporters," with E. Borensztein and O. Jeanne, Journal of Development Economics, 101: 105-116, 2013. VoxEU

Commodity exporters can seize large welfare gains from hedging against commodity price fluctuations.

• "The Eurozone Crisis: How Banks and Sovereigns Came to be Joined at the Hip," with A. Mody, Economic Policy, 27(70): 199-230, 2012. VoxEU

As the Eurozone Crisis intensified, the financial destiny of banks and sovereigns become more intertwined. 

• "Precautionary Savings in the Great Recession," with A. Mody and F. Ohnsorge, IMF Economic Review, 60(1): 114-138, 2012. VoxEU

At least two-fifths of the sharp increase in household saving during the GFC can be attributed to precautionary motives. 

• "Measuring Distortions to Agricultural Incentives, Revisited," with K. Anderson et al., World Trade Review, 7(4): 675-704, 2008.

• "Distortions in Farmer Prices since the 1950s: South Africa in International Perspective," with K. Anderson et al., Agrekon, 46(4): 427-459, 2007.

Policy Papers

• "Quo vadis, r*? The natural rate of interest after the pandemic," with G. Benigno, B. Hofmann and G. Nuño,  Special Feature BIS Quarterly Review, March 2024. VoxEU

• "Monetary Policy Frameworks Away from the ELB," with F. De Fiore, B. Mojon, and D. Rees, BIS WP 1156, December 2023.

• "Lessons from crypto assets for the design of energy efficient digital currencies," with I. Agur, X. Lavayssiere, G Villegas Bauer, J. Deodoro, S. Martinez Peria, and H. Tourpe, Ecological Economics, 212, October 2023.

• "Monetary and fiscal policy: safeguarding stability and trust," BIS Annual Economic Report, Chapter 2, June 2023.

• "Global Exchange Rate Adjustments: Drivers, Impacts and Policy Implications," with B. Hofmann and A. Mehrotra, BIS Bulletin No 62, 2022.

• "Digital Currencies and Energy Consumption," FinTech Notes No 2022/006, June 2022. IMF Blog.

• "A New Shock and Little Room to Maneuver," Regional Economic Outlook for Sub-Saharan Africa, April 2022. 

• "Review of The Institutional View on The Liberalization and Management of Capital Flows," IMF Policy Paper, March 2022.

• "Monetary Finance: Do not Touch or Handle with Care?" with I. Agur, D. Capelle, and G. Dell'Ariccia, IMF Departmental Paper, January 2022. IMF blog, SUERF, Economist

• "The Great Lockdown: Dissecting the Economic Effects," with F. Caselli, F. Grigoli, and W. Lian, World Economic Outlook, Chapter 2, October 2020. IMF blog

• "Dampening Global Financial Shocks in Emerging Markets: Can Macroprudential Regulation Help?" with K. Bergant, F. Grigoli, and N. Hansen, World Economic Outlook,  Chapter 3, April 2020. IMF blog

• "An Early View of the Economic Impact on the Pandemic in 5 Charts," with J. Bluedorn and G. Gopinath, IMF Blog, April 6th 2020.

• "Structural Reform Priorities for Brazil," with N. Biljanovska, IMF Working Paper No. 18/224 , 2018. Analytical Corner presentation

• "Trade-offs in Bank Resolution," Staff Discussion Note 18/02, February 2018. Analytical Corner presentation

• "Negative Interest Rate Policies - Initial Experiences and Assessments," IMF Policy Paper, August 2017.

• "Ukraine, Selected Issues: Corruption and Growth," IMF Country Report No.17/84, April 2017.

• "Monetary Policy and Financial Stability," IMF Policy Paper, September 2015.

• "The Fund's Lending Framework and Sovereign Debt - Further Considerations ," IMF Policy Paper, April 2015.

• "How Delaying Fiscal Consolidation Affects the Present Value of GDP," with K. Fletcher, IMF Working Paper No. 15/52, 2015.

• "The Fund's Lending Framework and Sovereign Debt - Preliminary Considerations ," IMF Policy Paper, June 2014.

• "Credit Supply and Economic Growth," with A. Pescatori, World Economic Outlook, Box 1.1, Spring 2014.

• "Debt and Growth: Is There a Magic Threshold?," with A. Pescatori and J. Simon, IMF Working Paper No. 14/34, 2014.

• "The Yin and Yang of Capital Flow Management: Balancing Capital Inflows with Capital Outflows," with J. Benes, J. Guajardo and J. Simon, World Economic Outlook, Chapter 4, Fall 2013.

• "The Dog that Didn't Bark: Has Inflation Been Muzzled or Was It Just Sleeping?," with T. Matheson and J. Simon, World Economic Outlook, Chapter 3, Spring 2013.

• "The Good, the Bad, and the Ugly: 100 Years of Dealing with Public Debt Overhangs," with A. Pescatori and J. Simon, World Economic Outlook, Chapter 3, Fall 2012.

• "Precautionary Savings and Global Imbalances in World General Equilibrium," IMF Working Paper No. 11/122, 2011.

• "Current Account Rebalancing and Real Exchange Rate Adjustment between the U.S. and Emerging Asia," with I. Mejean and P. Rabanal, IMF Working Paper No. 11/46, 2011.

• "U.S. Consumption after the 2008 Crisis," with J. Lee and P. Rabanal, IMF Staff Position Note 10/01, 2010.

Book Chapters

• "Structural Reform Priorities for Brazil,'" with N. Biljanovska, Ch.5 in Brazil: Boom, Bust, and the Road to Recovery, edited by A. Spilimbergo and K. Srinivasan, 2018, International Monetary Fund, Washington DC.

• "Agricultural Distortion Patterns since the 1950s: What Needs Explaining," with K. Anderson et al., Ch.2 in The Political Economy of Agricultural Price Distortions, 2010, Cambridge University Press.

• "Distortions to Agricultural Incentives in Ecuador," with E. Valenzuela and S. Wong, Ch.7 in Distortions to Agricultural Incentives in Latin America, 2008, published by the World Bank, Washington DC.

• "Methodology for Measuring Distortions to Agricultural Incentives," with K. Anderson et al., Appendix A in the Distortions to Agricultural Incentives volumes for Latin America (2008), Europe's Transition Economies (2008), Africa (2009), and Asia (2009), published by the World Bank, Washington DC.

Last updated in April, 2024