Bio

Romanos Priftis is a Principal Researcher in the Canadian Economic Analysis (CEA) Department. His research interests include macroeconomics, monetary economics, fiscal policy, and DSGE modeling. Prior to joining the Bank in 2017, Romanos held a position in the Modeling Unit of DG ECFIN at the European Commission. He received his Ph.D. in Economics from the European University Institute in 2015.

Research Field(s): International Macroeconomics International Trade and Finance Monetary and Fiscal Policy
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Staff discussion papers

Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature

Staff Discussion Paper 2020-16 Grahame Johnson, Sharon Kozicki, Romanos Priftis, Lena Suchanek, Jonathan Witmer, Jing Yang
This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies.
Content Type(s): Staff research, Staff discussion papers Topic(s): Monetary policy, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E5, E52, E58, E6, E63

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Staff working papers

Fiscal Spillovers: The Case of US Corporate and Personal Income Taxes

Staff Working Paper 2021-41 Madeline Hanson, Daniela Hauser, Romanos Priftis
How do changes to personal and corporate income tax rates in the United States affect its trading partners? Spillover effects from cuts in the two taxes differ. They are generally small and negative for corporate taxes, but sizable and positive for personal income taxes.
Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Exchange rate regimes, Fiscal policy, International topics JEL Code(s): E, E3, E32, E6, E62, F, F4, F44, H, H2, H20

(Optimal) Monetary Policy with and without Debt

Staff Working Paper 2021-5 Boris Chafwehé, Rigas Oikonomou, Romanos Priftis, Lukas Vogel
How should policy be designed at high debt levels, when fiscal authorities have little room to adjust taxes? Assigning the monetary authority a role in achieving debt sustainability makes it less effective in stabilizing inflation and output.
Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Monetary policy, Monetary policy framework JEL Code(s): C, C1, C11, E, E3, E31, E5, E52, E58, E6, E62

Optimal Quantitative Easing in a Monetary Union

Staff Working Paper 2020-49 Serdar Kabaca, Renske Maas, Kostas Mavromatis, Romanos Priftis
How should a central bank conduct quantitative easing (QE) in a monetary union when regions differ in their size and portfolio characteristics? Optimal QE policy suggests allocating greater purchases from the region that faces stronger portfolio frictions, and not necessarily according to each region’s size.
Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Monetary policy JEL Code(s): E, E4, E43, E5, E52, E58

The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model

Staff Working Paper 2019-6 Stefan Hohberger, Romanos Priftis, Lukas Vogel
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.
Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Interest rates, Monetary policy, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, F, F4, F41

Sources of Borrowing and Fiscal Multipliers

Staff Working Paper 2018-32 Romanos Priftis, Srecko Zimic
This paper finds that debt-financed government spending multipliers vary considerably depending on the location of the debt buyer. In a sample of 33 countries, we find that government spending multipliers are larger when government purchases are financed by issuing debt to foreign investors (non-residents), compared with when government purchases are financed by issuing debt to home investors (residents).
Content Type(s): Staff research, Staff working papers Topic(s): Debt management, Economic models, Fiscal policy, International financial markets JEL Code(s): E, E2, E6, E62, F, F4, F41, H, H3

The Macroeconomic Effects of Quantitative Easing in the Euro Area: Evidence from an Estimated DSGE Model

Staff Working Paper 2018-11 Stefan Hohberger, Romanos Priftis, Lukas Vogel
This paper estimates an open-economy dynamic stochastic general equilibrium model with Bayesian techniques to analyse the macroeconomic effects of the European Central Bank’s (ECB’s) quantitative easing (QE) programme. Using data on government debt stocks and yields across maturities, we identify the parameter governing portfolio adjustment in the private sector.
Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Interest rates, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, F, F4, F41

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Journal publications

Refereed journals

  • “Sources of Borrowing and Fiscal Multipliers” (2020) with Srecko Zimic, Economic Journal, forthcoming
  • “The Macroeconomic Effects of Quantitative Easing in the Euro Area: Evidence from an Estimated DSGE Model” (2019), with Stefan Hohberger and Lukas Vogel, Journal of Economic Dynamics and Control, Vol. 108, November 2019
  • “The Distributional Effects of Conventional and Unconventional Monetary Policy: Evidence from an Estimated DSGE Model” (2020) with Stefan Hohberger and Lukas Vogel, Journal of Banking and Finance, Vol. 113, April 2020
  • “Growth Effects of Corporate Balance Sheet Adjustments” (2019) with Anastasia Theofilakou, Empirical Economics, September 2019
  • “Optimal Debt Management in a Liquidity Trap” (2018) with Hafedh Bouakez and Rigas Oikonomou, Journal of Economic Dynamics and Control, Vol. 93, pages 5—21
  • “The Macroeconomic Effects of the ECB's Evolving QE programe: A Model-Based Analysis” (2017) with Lukas Vogel, Open Economies Review, Vol. 28, Issue 5, pages 823--845.
  • “The Portfolio Balance Mechanism and QE in the Euro Area” (2016)
    (with Lukas Vogel), The Manchester School, Vol. 84, Issue S1, pages 84-105, Special Issue: Money, Macroeconomics and Finance Research Group.