Jordi Galí
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Jordi Galí (born January 4, 1961) is a
Spanish Spanish might refer to: * Items from or related to Spain: **Spaniards are a nation and ethnic group indigenous to Spain **Spanish language, spoken in Spain and many countries in the Americas **Spanish cuisine **Spanish history **Spanish culture ...
macroeconomist who is regarded as one of the main figures in
New Keynesian macroeconomics New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroec ...
today. He is a Senior Researcher at the Centre de Recerca en Economia Internacional (CREI), a Professor at
Universitat Pompeu Fabra Pompeu Fabra University (, ; ) is a public university located in the city of Barcelona, Catalonia in Spain. Established in 1990 by the Autonomous Government of Catalonia and named after Pompeu Fabra, it is known for its competitiveness in resea ...
and a Research Professor at the Barcelona School of Economics. After obtaining his doctorate from MIT in 1989 under the supervision of
Olivier Blanchard Olivier Jean Blanchard (; born December 27, 1948) is a French economist and professor. He is Robert M. Solow Professor Emeritus of Economics at the Massachusetts Institute of Technology, Professor of Economics at the Paris School of Economics, an ...
, he held faculty positions at
Columbia University Columbia University in the City of New York, commonly referred to as Columbia University, is a Private university, private Ivy League research university in New York City. Established in 1754 as King's College on the grounds of Trinity Churc ...
and
New York University New York University (NYU) is a private university, private research university in New York City, New York, United States. Chartered in 1831 by the New York State Legislature, NYU was founded in 1832 by Albert Gallatin as a Nondenominational ...
before moving to Barcelona.


Research contributions

Galí's research centers on the causes of
business cycle Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for the welfare of the general population, governmen ...
s and on optimal
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...
, especially through the lens of
time series analysis In mathematics, a time series is a series of data points indexed (or listed or graphed) in time order. Most commonly, a time series is a sequence taken at successive equally spaced points in time. Thus it is a sequence of discrete-time data. ...
. His studies with Richard Clarida and Mark Gertler suggest that monetary policy in many countries today resembles the
Taylor rule The Taylor rule is a monetary policy targeting rule. The rule was proposed in 1992 by American economist John B. Taylor for central banks to use to stabilize economic activity by appropriately setting short-term interest rates. The rule considers ...
, whereas the policy makers of the 1970s failed to follow the Taylor rule. Another theme of Galí's research is how central banks should set interest rates. In some of the simplest
New Keynesian New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroe ...
macroeconomic models, stabilizing the
inflation rate In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
stabilizes the
output gap The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP, in an attempt to identify the current economic position over the business cycle. The measure of output gap is largely used in macroeconomic p ...
too. If this property were roughly true in reality, it would permit central bankers to pursue a simplified
Taylor rule The Taylor rule is a monetary policy targeting rule. The rule was proposed in 1992 by American economist John B. Taylor for central banks to use to stabilize economic activity by appropriately setting short-term interest rates. The rule considers ...
focused only on inflation stabilization, with no need to consider output growth. Jordi Galí and
Olivier Blanchard Olivier Jean Blanchard (; born December 27, 1948) is a French economist and professor. He is Robert M. Solow Professor Emeritus of Economics at the Massachusetts Institute of Technology, Professor of Economics at the Paris School of Economics, an ...
have called this property the ' divine coincidence', and have argued that in more realistic models which include additional frictions, it no longer holds. Instead, models with additional frictions (such as
frictional unemployment Frictional unemployment is a form of unemployment reflecting the gap between someone voluntarily leaving a job and finding another. As such, it is sometimes called search unemployment, though it also includes gaps in employment when transferrin ...
) imply a tradeoff between stabilizing inflation and stabilizing the output gap. Galí is perhaps best known for providing
time series In mathematics, a time series is a series of data points indexed (or listed or graphed) in time order. Most commonly, a time series is a sequence taken at successive equally spaced points in time. Thus it is a sequence of discrete-time data. ...
evidence that improvements in
labour productivity Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor produc ...
cause employment to decrease. This finding contradicts the predictions of some well-known
real business cycle Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real, in contrast to nominal, shocks. RBC theory sees business cycle fluctuations as the effic ...
models promoted by the
New Classical New classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical economics, neoclassical framework. Specifically, it emphasizes the import ...
macroeconomic school, but is (according to Galí) consistent with many
New Keynesian New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroe ...
models. However, the statistical methods (' structural vector autoregressions') on which this finding is based remain controversial. Galí is the most cited author of
Journal of Monetary Economics The ''Journal of Monetary Economics'' is a peer-reviewed academic journal covering research on macroeconomics and monetary economics. It is published by Elsevier and was established in October 1973 by Karl Brunner and Charles I. Plosser. Beginn ...
and
European Economic Review The ''European Economic Review'' is a peer-reviewed academic journal that covers research in economics. The journal was established in 1969 and the editors-in-chief are Evi Pappa (Universidad Carlos III de Madrid), David K. Levine (Royal Holloway U ...
.


Books

In 2008,
Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University. Its mission is to disseminate scholarship within academia and society at large. The press was founded by Whitney Darrow, with the financial ...
published Galí's monograph ''Monetary Policy, Inflation, and the Business Cycle''. The book provides an introduction to New Keynesian
DSGE Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a macroeconomic method which is often employed by monetary and fiscal authorities for policy analysis, explaining historical time-series data, as w ...
models, and analyzes the implications of those models for
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...
. It is written at a level intended for introductory graduate courses in macroeconomics. A second edition was published in 2015.


Awards

In 2005, Galí received the
Yrjö Jahnsson Award Yrjö, a masculine Finnish given name that is the equivalent of George, may refer to: * Yrjö von Grönhagen (1911–2003), Finnish anthropologist * (1903–1956), Finnish poet * Yrjö Kilpinen (1892–1959), Finnish composer * Yrj ...
of the
European Economic Association The European Economic Association (EEA) is a learned society, professional academic body which links European economists. It was founded in the mid-1980s. Its first annual congress was in 1986 in Vienna and its first president was Jacques Drèze. ...
, of which he is also a fellow, in recognition of his work on New Keynesian macroeconomics. He shared the prize with Timothy Besley of the
London School of Economics The London School of Economics and Political Science (LSE), established in 1895, is a public research university in London, England, and a member institution of the University of London. The school specialises in the social sciences. Founded ...
. Thomson Reuters lists him among the 'citation laureates' who are likely future winners of the
Nobel Prize in Economics The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (), commonly referred to as the Nobel Prize in Economics(), is an award in the field of economic sciences adminis ...
. For 2024 he was awarded the
BBVA Foundation Frontiers of Knowledge Award The BBVA Foundation Frontiers of Knowledge Awards () are an international award programme recognizing significant contributions in the areas of scientific research and cultural creation. The categories that make up the Frontiers of Knowledge Awards ...
in the category of "Economics and Finance". He was elected a member of the
Academia Europaea The Academia Europaea is a pan-European Academy of humanities, letters, law, and sciences. The Academia was founded in 1988 as a functioning Europe-wide Academy that encompasses all fields of scholarly inquiry. It acts as co-ordinator of Europe ...
in 2012.


See also

* Barcelona Graduate School of Economics


References


External links


Galí's website at the

Jordi Galí's Barcelona GSE faculty profile

Barcelona GSE Research Professors
{{DEFAULTSORT:Gali, Jordi 1961 births Living people New Keynesian economists Macroeconomists Economists from Catalonia 20th-century Spanish economists 21st-century Spanish economists Academic staff of Pompeu Fabra University Academic staff of the Barcelona School of Economics Fellows of the Econometric Society Fellows of the European Economic Association Members of Academia Europaea