Damiano Sandri


Current Positions:

Email: damiano.sandri"at"bis.org

Research interests: monetary policy, international finance, macro-financial linkages

Work in Progress

News about a large bank failuresuch as SVBincreases the risk of other bank runs but some types of public communication can reassure depositors.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Policy Papers

Book Chapters

Last updated in April, 2024