Jordi Galí facts for kids
Quick facts for kids
Jordi Galí
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Galí in 2017
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| Born | January 4, 1961 Barcelona, Spain
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| Institution | Universitat Pompeu Fabra (2001–) CREI (1999–) Barcelona Graduate School of Economics (2006–) New York University (1994–01) Columbia University (1989–94) |
| Field | Macroeconomics |
| School or tradition |
New Keynesian economics |
| Alma mater | MIT (Ph.D. 1989) |
| Doctoral advisor |
Olivier Blanchard |
| Influences | Mark Gertler |
| Awards | Yrjö Jahnsson Award (2005) |
| Information at IDEAS / RePEc | |
Jordi Galí (born January 4, 1961) is a famous Catalan economist from Spain. He is known as one of the most important people in a field of economics called New Keynesian macroeconomics. This is a way of thinking about how big economies work. He works as a Senior Researcher at CREI, a Professor at Universitat Pompeu Fabra, and a Research Professor at the Barcelona School of Economics. Before coming to Barcelona, he studied at MIT and taught at Columbia University and New York University.
Contents
Understanding How Economies Work
Jordi Galí's main research looks at why economies go through ups and downs. These ups and downs are called business cycles. He also studies the best ways for central banks to manage money, which is known as monetary policy. He often uses a method called time series analysis. This means looking at how economic data changes over time.
How Central Banks Set Interest Rates
Galí, along with other economists like Richard Clarida and Mark Gertler, has studied how central banks in many countries set interest rates. Their research suggests that today's central banks often follow a guide called the Taylor rule. This rule helps them decide how to change interest rates based on inflation and economic growth. However, they found that policymakers in the 1970s did not follow this rule as closely.
Another important part of Galí's research is about how central banks should set interest rates. In some simple economic models, if a central bank keeps inflation steady, it also helps to keep the economy's output at a good level. This idea is called the 'divine coincidence'. Jordi Galí and Olivier Blanchard have shown that in more realistic models, this 'divine coincidence' might not always be true. This means central banks might have to choose between keeping inflation stable and keeping the economy's output stable.
Productivity and Jobs
Galí is also well-known for his research on how improvements in how much workers produce (called labour productivity) can affect the number of jobs. His studies show that when productivity goes up, the number of jobs can sometimes go down. This finding is different from what some older economic models predicted. However, Galí argues it fits well with many New Keynesian models. The specific statistical methods he uses for this research are still discussed among economists.
Books by Jordi Galí
In 2008, Jordi Galí wrote a book called Monetary Policy, Inflation, and the Business Cycle. This book helps explain a type of economic model called New Keynesian DSGE models. It also looks at what these models mean for monetary policy. The book is written for students who are just starting graduate-level courses in economics. A second version of the book was published in 2015.
Awards and Recognition
In 2005, Jordi Galí received the Yrjö Jahnsson Award from the European Economic Association. This award recognized his important work in New Keynesian macroeconomics. He shared the prize with Timothy Besley. Thomson Reuters has also listed him as one of the 'citation laureates'. This means he is considered a possible future winner of the Nobel Prize in Economics.
In 2012, he was chosen to be a member of the Academia Europaea, which is a group of top European scientists and scholars.
See also
In Spanish: Jordi Galí para niños
- Barcelona Graduate School of Economics
