Research

Abstract. Recent research unveiled the heterogeneous effects of rising energy prices for low-income and high-income European households, as they tend to purchase distinct consumption baskets. We explore the effects of energy inflation on consumption inequality in a Two-Agent New Keynesian (TANK) model with an exogenous energy sector, and look for the optimal monetary policy response to an energy price shock. We find that rising energy prices widen consumption inequality through the expansions of inflation and income gaps. The effects of a maximizing welfare monetary policy are partially approximated by a core inflation targeting Taylor rule.

Presented at: Milan PhD Economics Workshop (Milan, 2023); CREi Macro Lunch Seminar (Barcelona, 2024); Macro Lounge Seminar Series (Online, 2024), ECB RCC4 Workshop on Household Economics (Frankfurt am Main, 2024).

This paper analyzes the Bank Recovery and Resolution Directive applications on European so-called Less Significant Institutions (LSIs), looking for the conditions that led competent authorities to start a resolution procedure,  and actions implemented to intervene on cases of banking crisis and bankruptcy.