SAFE Policy Lecture: Francesco Papadia (Bruegel)
Title: Do we need to rethink the central banking model prevailing before the Great Recession?
Speaker: Francesco Papadia (Senior Fellow, Bruegel)
Discussant: Ulrich Bindseil (European Central Bank)
Moderator: Hans-Helmut Kotz (SAFE and Harvard University)
At the end of last century, just as the European Central Bank was created, a central banking model, broadly based on the experience of independent central banks like the Bundesbank, prevailed in advanced economies. This model seemed to be validated during the Great Moderation. The Great Recession imparted some serious hits to that model, with central banks called to take new responsibilities in the monetary policy as well as in the financial stability domains. The question is whether these changes require a basic revision of the pre-crisis central bank model. The tentative answer to this question is that adaptations rather than radical changes are required to account for the lessons of the Great Recession.
Francesco Papadia is Senior Resident Fellow at the Bruegel Think-Tank as well as Chair of the Selection Panel of the Hellenic Financial Stability Fund and of the Prime Collateralised Securities initiative. Prior to this, between 1998 and 2012, he was Director General for Market Operations at the European Central Bank. Between 1973 and 1998 he held different positions at the Research Department and then at the Foreign Relations Department of Banca d’Italia, except for the 1980-1982 period, when he was Economic Advisor at the European Commission. He graduated in law from the University of Rome in 1970 with a dissertation in Public Finance. In 1970-1973 he pursued postgraduate studies in economics at Istao, Ancona, and then in 1973-1974 attended the Master's Programme at the London Business School. He has published numerous articles and 4 books on monetary and international economic issues.