Paolo Cavallino

1 month ago | bis.org | Paul Beaudry |Paolo Cavallino |Tim Willems

FocusLong-term real interest rates are typically thought to be determined by real factors like productivity growth, demographics, income inequality and shifts in the demand and supply of safe assets. However, long-term real rates seem to be very sensitive to changes in central bank policy rates.

2 months ago | bankofengland.co.uk | Paul Beaudry |Paolo Cavallino |Tim Willems

Staff Working Paper No. 1,117By Paul Beaudry, Paolo Cavallino and Tim WillemsThis paper presents theory and evidence to advance the notion that very persistent policy‑induced interest rate changes may have only weak effects on activity. This arises when consumption‑savings decisions are not primarily driven by intertemporal substitution, but also by life‑cycle forces.

May 30, 2024 | nber.org | Paul Beaudry |Paolo Cavallino |Tim Willems

Skip to main content We thank Ricardo Caballero, Ben Moll, Thijs Knaap, Jean-Paul L'Huillier, Tatiana Kirsanova, Alessandro Rebucci, audiences at the 2023 SED conference in Cartagena, the 5th WMMF Conference in Warsaw, the 2023 PSE Macro Days, the Reserve Bank of Australia, and the Bank of England for useful comments and discussions. The views expressed in this paper are those of the authors, and not necessarily those of the BIS, the Bank of England or its committees.