Stefano Gnocchi is the Senior Research Director in the Canadian Economic Analysis (CEA) Department. His research interests include macroeconomics, monetary economics, and monetary and fiscal policy. Prior to joining the Bank, Stefano held academic positions at the Universitat Autonoma de Barcelona and the Barcelona Graduate School of Economics. He holds a Ph.D. in Economics from Universitat Pompeu Fabra.

Staff working papers

Time Use and Macroeconomic Uncertainty

Staff Working Paper 2023-29 Matteo Cacciatore, Stefano Gnocchi, Daniela Hauser
We estimate the effects of economic uncertainty on time use and discuss its macroeconomic implications. We develop a model to demonstrate that substitution between market and non-market work provides an additional insurance margin to households, weakening precautionary savings and labour supply and lowering aggregate demand, ultimately amplifying the contractionary effects of uncertainty.

Downward Nominal Wage Rigidity Meets the Zero Lower Bound

Staff Working Paper 2017-16 Robert Amano, Stefano Gnocchi
We add downward nominal wage rigidity to a standard New Keynesian model with sticky prices and wages, where the zero lower bound on nominal interest rates is allowed to bind. We find that wage rigidity not only reduces the frequency of zero bound episodes but also mitigates the severity of corresponding recessions.

Labor Market Participation, Unemployment and Monetary Policy

Staff Working Paper 2014-9 Alessia Campolmi, Stefano Gnocchi
We incorporate a participation decision in a standard New Keynesian model with matching frictions and show that treating the labor force as constant leads to incorrect evaluation of alternative policies.

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Bank publications

Bank of Canada Review articles

May 16, 2016

The Micro and Macro of Downward Nominal Wage Rigidity

The article examines the extent of downward nominal wage rigidity in Canada and its implications for monetary policy. The authors ask whether its existence is a sufficient argument for a higher inflation target if concerns about the effective lower bound are adequately addressed.

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Journal publications

Refereed journals

  • "Housework and Fiscal Expansions",
    (with Daniela Hauser and Evi Pappa), Journal of Monetary Economics, Vol. 79, pages 94-108, May 2016.
  • "Labor Market Participation, Unemployment and Monetary Policy",
    (with Alessia Campolmi), Journal of Monetary Economics, Vol. 79, pages 17-29, May 2016.
  • "Do Labor Market Institutions Matter for Business Cycles?",
    (with Andresa Lagerborg and Evi Pappa), Journal of Economic Dynamics and Control, Vol. 51, pages 299-317, February 2015.
  • "Monetary Commitment and Fiscal Discretion: The Optimal Policy Mix",
    American Economic Journal: Macroeconomics, Vol. 5, Issue 2, pages 187-216, April 2013.
  • "Non-Atomistic Wage Setters and Monetary Policy in a New-Keynesian Framework",
    Journal of Money, Credit and Banking, Vol. 41, Issue 8, pages 1613-1630, December 2009.


Working papers

  • "Discretionary Fiscal Policy and Optimal Monetary Policy in a Currency Area",
    Working Paper No. 602, Dipartimento di Scienze Economiche Bologna, 2007.
  • "Optimal simple monetary policy rules and non-atomistic wage setters in a New-Keynesian framework",
    Working Paper No. 690, European Central Bank, 2006.