Jordi Galí

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Jordi Galí

Jordi Galí (born January 4, 1961 in Barcelona , Spain ) is a Spanish economist who is considered to be one of the main exponents of New Keynesianism .

Galí is the head of the Center de Recerca en Economía Internacional (CREI, the Research Center for International Economics) at the Pompeu Fabra University in Barcelona. After earning a PhD from the Massachusetts Institute of Technology in 1989, under the supervision of Olivier Blanchard , he held positions at Columbia University and New York University before moving to Barcelona.

Galí's research topics deal with the causes of business cycles and optimal monetary policy , in particular through the method of time series analysis . His research with Richard Clarida and Mark Gertler suggests that monetary policy in many countries today follows the Taylor rule , whereas policymakers in the 1970s did not follow the Taylor rule.

Another focus of Galí's research is the debate about setting interest rates. In some of the simplest Neo-Keynesian models, stabilizing the inflation rate also tends to tighten the output gap against fluctuations. If this approach was anything but realistic, it would allow the central bank to follow the simplified Taylor rule of just looking to stabilize the inflation rate without taking output growth into account. Jordi Galí and Olivier Blanchard have called this approach “divine providence” and have argued that more realistic models that include additional frictions (e.g. frictional unemployment ) imply a trade-off between stabilizing the inflation rate and the output gap.

Galí is best known for empirically demonstrating that improvements in labor productivity lead to a short-term decline in employment, which contradicts the predictions of well-known real-cycle models from the neoclassical macroeconomic school but, according to Galí, is consistent with many neo-Keynesian models. However, the statistical methods (structural vector autoregressive models ) on which these findings are based remain controversial.

Individual evidence

  1. ^ Jordi Galí: Keeping up with the Joneses. Consumption externalities, portfolio choice, and asset prices . In: Journal of Money, Credit and Banking . Volume 26, Issue 1, 1994, pp. 1-8.
  2. ↑ Richard Clarida, Mark Gertler, Jordi Galí: Monetary policy rules and macroeconomic stability. Theory and some evidence. In: Quarterly Journal of Economics . Volume 115, 2000, pp. 147-180.
  3. ↑ Richard Clarida, Mark Gertler and Jordi Galí: Monetary policy rules in practice. Some international evidence. In: European Economic Review . Volume 42, Issue 6, 1998, pp. 1033-1067.
  4. ↑ Marvin Goodfriend, Robert G. King: The New Neoclassical Synthesis and the role of monetary policy . In: NBER Macroeconomics Annual . Volume 12, Issue 1, 1997.
  5. ↑ Comments by N. Gregory Mankiw on the 'divine coincidence'.
  6. ↑ Olivier Blanchard, Jordi Galí: Real wage rigidities and the New Keynesian model . In: Journal of Money, Credit, and Banking . Volume 39 (supplement 1), 2007, pp. 35-65.
  7. ↑ Jordi Galí: Technology, employment, and the business cycle: Do technology shocks explain aggregate fluctuations? In: American Economic Review . Volume 89, Issue 1, 1999, pp. 249-271.
  8. ↑ Thomas F. Cooley, Mark Dwyer: Business Cycle Analysis Without Much Theory. A Look at Structural VARs . In: Journal of Econometrics . Volume 83, 1998, pp. 57-88.
  9. ^ Jon Faust, Eric M. Leeper: When Do Long-Run Identifying Restrictions Give Reliable Results? In: Journal of Business and Economic Statistics . Volume 15, Issue 3, 1997, pp. 345-253.
  10. ^ VV Chari, Patrick J. Kehoe, Ellen McGrattan: Are Structural VARs with Long-Run Restrictions Useful in Developing Business Cycle Theory? . Federal Reserve Bank of Minneapolis Staff Report # 364, 2007.

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personal data
SURNAME Galí, Jordi
BRIEF DESCRIPTION Spanish economist and one of the main exponents of Neo-Keynesianism
DATE OF BIRTH 4th January 1961
PLACE OF BIRTH Barcelona , Spain