Luigi Federico Signorini: Globalisation and monetary policy

Welcome address by Mr Luigi Federico Signorini, Deputy Governor of the Bank of Italy, at the CEPR International Macroeconomics and Finance (IMF) Programme Meeting Webinar, 10-11 December 2020.

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

Ladies and gentlemen,

It is my privilege to open this meeting of the CEPR's international finance and macro group. In these unusual times, one must forgo the benefits of informal, realworld interaction. We are now all of us well accustomed to making the most of virtual discussions. Nevertheless, I do hope that we shall soon be able, and have the opportunity, to welcome you here in Rome in person.

Globalisation is one of the key themes for this group. For over two decades, starting from the mid-eighties, the world saw cross-border movements of goods and (especially) capital increase apace, much faster than GDP. It was not, of course, the first instance of such a sustained process. It had happened during the 'Belle Époque' of globalisation, between 1870 and the outbreak of the First World War, and again after the Second. Often, increased exchanges went hand-in-hand with accelerating economic growth, the dissemination of productivity-enhancing technology, the spread of new cultural models, and an internationally open mind-set, especially among the élites-in a knot of reciprocal causation links that is not easy to disentangle.