ERC Starting Grant · 2022
Reimagining monetary policy as a federal project
Monetary policy suffers from a “one size fits all” problem. Central banks typically determine monetary policy by setting a headline interest rate uniformly across their jurisdiction. Yet, in large jurisdictions, the optimal monetary policy on average tends to be suboptimal for economically heterogeneous regions. Outside the realm of monetary policy, a solution to this type of governance problem is widely accepted: federalism. But the state of the art has not analyzed federalism as a paradigm of monetary governance. This is curious especially because it is not uncommon for central banks to be structured institutionally according to federalist principles: split into a central headquarters and…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.