Giuseppe Grande
Bank of Italy, Market and Payment Systems Oversight Directorate, Department Member
Since Fisher's initial contribution in the early thirties, several studies have looked at the ability of different assets to provide a hedge against inflation. The Fisher hypothesis, relying on the idea that the monetary and real... more
Since Fisher's initial contribution in the early thirties, several studies have looked at the ability of different assets to provide a hedge against inflation. The Fisher hypothesis, relying on the idea that the monetary and real sectors of the economy are largely independent, states that expected asset returns should move one-to-one with expected inflation. In principle this hypothesis is applicable to any instrument that can serve to transfer wealth through time, but it should especially apply to assets representing physical capital, such as real estate and shares in the capital of a company. These assets should also provide a hedge against unexpected inflation. However, empirical studies have often concluded that the Fisher hypothesis is not well supported by the data; more surprisingly, its failure appears clearest for equities. Theoretical as well as applied research has shown that the relation between stock prices and inflation is influenced by economic policy, and by mone...
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This publication collects the papers presented at the workshop entitled "The sovereign debt crisis and the euro area", held at the Bank of Italy in Rome on 15 February 2013. In recent years the Economic Research and... more
This publication collects the papers presented at the workshop entitled "The sovereign debt crisis and the euro area", held at the Bank of Italy in Rome on 15 February 2013. In recent years the Economic Research and International Relations Area of the Bank of Italy has conducted several analyses on the impact of the sovereign debt crisis on the financial system and the economy in Italy and other euro-area countries. The workshop provided a first opportunity to discuss the results of those analyses with representatives of the academic world. The volume comprises three sections, which examine the main mechanisms whereby the tensions in the government bond markets due to the sovereign debt crisis were transmitted to the banking system and then to the real economy.
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ABSTRACT More than three years since the outbreak of the sovereign debt crisis in the euro area the banking systems of several countries remain exposed to the vagaries of government bond markets. The paper analyzes the different channels... more
ABSTRACT More than three years since the outbreak of the sovereign debt crisis in the euro area the banking systems of several countries remain exposed to the vagaries of government bond markets. The paper analyzes the different channels through which sovereign risk affects banking risk (and vice versa), presents some new evidence on bank-sovereign links, and discusses policy options for addressing the related risks.
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... di Riccardo Cesari, * Giuseppe Grande ** e Fabio Panetta ... Si ringraziano per i commenti ricevuti Paolo Angelini, Riccardo Bucciarelli, Antonio Di Cesare, Patrizia Ferrauto, Dario Focarelli, ElsaFornero, Andrea Generale, Antonella... more
... di Riccardo Cesari, * Giuseppe Grande ** e Fabio Panetta ... Si ringraziano per i commenti ricevuti Paolo Angelini, Riccardo Bucciarelli, Antonio Di Cesare, Patrizia Ferrauto, Dario Focarelli, ElsaFornero, Andrea Generale, Antonella Magliocco, Francesco Nicolò, Monica Paiella e ...
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The paper considers four explanations of the recent turnaround in inflation in Italy: the Exchange rate channel that was the centerpiece of the monetary policy strategy in the preceding decade; domestic aggregate demand; inflation... more
The paper considers four explanations of the recent turnaround in inflation in Italy: the Exchange rate channel that was the centerpiece of the monetary policy strategy in the preceding decade; domestic aggregate demand; inflation expectations and “fiscal dominance,” that have both been a central issue in the recent debate on monetary policy effectiveness. The weight of each story is assessed
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The empirical literature on the transmission of monetary policy to inflation in Italy has stressed the importance of the exchange rate and, to some extent, of the demand channel; recently, the roles of inflation expectations and the... more
The empirical literature on the transmission of monetary policy to inflation in Italy has stressed the importance of the exchange rate and, to some extent, of the demand channel; recently, the roles of inflation expectations and the fiscal situation have been emphasized. This paper uses vector auto-regression to address this issue. The results suggest that inflation expectations do matter as