Damiano Sandri’s research while affiliated with Center for Economic and Policy Research and other places

... While the public is likely misinformed about many crisis bargaining outcomes, the role of information is particularly important in the context of the debt ceiling. Under normal conditions, fiscal politics and sovereign debt are difficult concepts for the public to understand (Grigoli and Sandri 2023;Roth, Settele, and Wohlfart 2022). As a result, the public often relies upon co-partisan cues or trusted media sources to form their opinions (Alt, Marshall, and Lassen 2016;Bansak, Bechtel, and Margalit 2021;Barnes and Hicks 2018). ...

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Information, Uncertainty, and Public Support for Brinkmanship During the 2023 Debt Limit Negotiations

... The distortions faced by table grape producers in Chile, Peru and South Africa were compared by calculating the nominal rate of assistance (NRA) to producers. NRA calculations gave an indication of the policy environment in which a specific agricultural sector in a country operates (Anderson et al. 2006). In this regard, welfare is maximised in the absence of externalities, trade distortions wholesale and retail marketing margins, and domestic and international trading costs. ...

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The competitiveness of South African table grape exports in the European markets: Threats from Peru and Chile

... One of the main causes of the non-performance of Ghanaian banking financial institutions at the time was inadequate liquidity influenced by the loss of confidence of the public sector (Al-Ardah & Al-Okdeh, 2022) resulting in panic withdrawals by customers of universal banks after hearing that financial institutions were facing liquidity challenges (Sandri et al., 2023). It was discovered that most financial institutions were relying on customers' deposits to finance working capital as a result of inadequate capital available for day-to-day operations (Ofori, 2023). ...

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THE The impact of capital adequacy and corporate governance on financial performance of universal banks in Ghana

... policies directly impacts liquidity levels, monetary stability, and economic growth (Bergant et al., 2024;Şahin, 2025). Many emerging economies struggle to balance the benefits of foreign exchange inflows with the risks of excessive liquidity expansion and inflationary pressures (Miranda-Agrippino & Rey, 2020). ...

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The Role of Monetary Sterilization Mechanisms in Achieving Monetary Stability in Iraq: An Econometric Analysis

... Özyilmaz (2022) inflation has a detrimental effect on investment, which has a direct influence on economic performance. Grigoli and Sandri (2023) conclude from analyzing the relationship between governmental debt and inflation that citizens underestimate the degree of debt and raise inflationary expectations. This study was concerned with the following countries: the US, England, and Brazil. ...

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Russia’s invasion of Ukraine and its impact on the economic performance of G20 countries

... Negative interest rates reduce bank profitability in the long run, partly because of banks' limited ability to pass negative rates on to depositors or adjust their business models. Grigoli and Sandri (2022) and Holm et al. (2021) provide insights into how interest rate changes affect household consumption and credit card spending. These studies indicate that the impact varies significantly across different income levels and household balance sheet compositions, suggesting that monetary policy effects are not uniform across the economy. ...

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The role and impact of the base rate of interest in economic growth in developing countries: A regulatory policy context

... of 20 [38], intervening in the foreign exchange market. The Czech Republic has been in the low regime for a brief period between 2007-2008. ...

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Do Central Banks Respond to Exchange Rate Movements? A Structural Analysis of Selected Inflation Targeters Emerging Economies

... This policy strengthens entrepreneurs' balance sheet relative to the scenario of no FX intervention, resulting in a stronger stabilization of domestic demand (consumption and investment) and the trade balance. 18 However, although the FX intervention policy is successful in dealing with capital outflows in a context of liability dollarization, the fact that monetary policy is set according to a calibrated rule means that it is still procyclical over the medium term and thus suboptimal. Figure 6 considers the case in which the central bank deploys both optimal FX intervention and monetary policy rules (φ R * = −0.29,θ ...

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Escaping the Financial Dollarization Trap: The Role of Foreign Exchange Intervention

... Research using firm-level data has shown that large firms' idiosyncratic shocks significantly influence GDP fluctuations in various countries, including the U.S. [16] [36], Europe (Austria, Belgium, Finland, France, Germany, Italy, Portugal and Spain) [37], the UK [38], Germany [39], France [28], Spain [40], China [41], Russia [42], Brazil [43], Australia [27], Korea [44], Finland [30], Chile [45], Canada [46], Sweden [47], Italy [48], Ireland [49], Hungary [50], Morocco [51], and Kazakhstan [52]. This provides global support for the granularity hypothesis. ...

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Granularity: Macroeconomics and Beyond

... Furthermore, McManus and Ozkan (2015) found that a procyclical fiscal policy reduces economic growth, increases inflation, and amplified the output's volatility. In the same vein, Borensztein et al. (2013), found that procyclical policies increase income export's volatility and the country's needs of precautionary saving, which combined, reduce the domestic welfare. For these reasons, the removal of financing constraints and the development of better institutions and political structures can help oil and non-oil developing countries in formulating sound and countercyclical fiscal policies (Ebril, 2011;Frankel et al., 2013). ...

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Asymmetric Effects of Oil Price Shocks on the Demand for Money in Algeria