Fabio Panetta: Monetary policy in the new normal - strategy, instruments and transmission

Welcome address by Mr Fabio Panetta, Senior Deputy Governor of the Bank of Italy, at the workshop on "Monetary Policy in the New Normal: Strategy, Instruments and Transmission", Rome, 11 October 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
14 October 2019

It is a pleasure to welcome all of you to Banca d'Italia for this workshop on "Monetary policy in the New Normal: Strategy, Instruments and Transmission". This event, which is organized by the Economic Outlook and Monetary Policy Directorate, has by now become an annual tradition, and brings together academics and central bankers to discuss relevant topics in the policy debate. The focus of this year's edition is on monetary policy in the so-called "New Normal".

What is the New Normal? Its meaning has changed somewhat over time. When the term was first used, it indicated generically the context in which monetary policy would have been operating after its "normalization", following a decade of extremely accommodative monetary conditions.