Romanos Priftis

Economics

Division: Forecasting and Policy Modelling
Current Position: Senior Economist
Fields of interest: Macroeconomics and Monetary Economics,Financial Economics,Mathematical and Quantitative Methods
Email: romanos.priftis@ecb.europa.eu

Biography

Education: 2010-2015
PhD in Economics, European University Institute, Italy; 2010-2011
MRes in Economics, European University Institute, Italy; 2008-2010
MPA in Public and Economic Policy, London School of Economics, United Kingdom; 2005-2008
BSc in Economics and Econometrics, University of Nottingham, United Kingdom
Professional experience: 2021-
Senior Economist, Forecasting and Policy Modelling Division, Directorate General Economics, European Central Bank; 2020-2022
Principal Researcher, Projection Division, Department of Canadian Economic Analysis, Bank of Canada; 2017-2020
Senior Economist, Projection Division, Department of Canadian Economic Analysis, Bank of Canada; 2014-2017
Economic Analyst, Macroeconomic Modelling Division, Directorate General for Economic and Financial Affairs, European Commission
Awards: 2010
Doctoral Scholarship from the Greek Scholarship Foundation (I.K.Y.)
Teaching experience: 2013
PhD Macroeconomics and Monetary Economics, European University Institute

ECB publications

17 May 2023

WORKING PAPER SERIES - No. 2819

Macroeconomic effects of carbon transition policies: an assessment based on the ECB’s New Area-Wide Model with a disaggregated energy sector

English

Abstract: We use scenario analysis to assess the macroeconomic eﬀects of carbon transition policies aimed at mitigating climate change. To this end, we employ a version of the ECB’s New Area-Wide Model (NAWM) augmented with a framework of disaggregated energy production and use, which distinguishes between “dirty” and “clean” energy. Our central transition scenario is that of a permanent increase in carbon taxes, which are levied as a surcharge on the price of dirty energy. Our ﬁndings suggest that increasing euro area carbon taxes to an interim target level consistent with the transition to a net-zero economy entails a transitory rise in inﬂation and a lasting, albeit moderate decline in GDP. We show that the short and medium-term eﬀects depend on the monetary policy reaction, on the path of the carbon tax increase and on its credibility, while expanding clean energy supply is key for containing the decline in GDP. Undesirable distributional eﬀects can be addressed by redistributing the ﬁscal revenues from the carbon tax increase to low-income households.
JEL Code: C54 : Mathematical and Quantitative Methods→Econometric Modeling→Quantitative Policy Modeling
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
H23 : Public Economics→Taxation, Subsidies, and Revenue→Externalities, Redistributive Effects, Environmental Taxes and Subsidies
Q43 : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Energy→Energy and the Macroeconomy

26 November 2018

WORKING PAPER SERIES - No. 2209

Sources of borrowing and fiscal multipliers

English

Abstract: This paper finds that debt-financed fiscal multipliers vary depending on the location of the debt buyer. In a sample of 33 countries fiscal multipliers are larger when government purchases are financed by issuing debt to foreign investors (non-residents), compared to when they are financed by issuing debt to home investors (residents). In a theoretical model, the location of the government creditor produces these differential responses through the extent that private investment is crowded out. International capital mobility of the resident private sector decreases the difference between the two types of financing both in the model and in the data.
JEL Code: F41 : International Economics→Macroeconomic Aspects of International Trade and Finance→Open Economy Macroeconomics
H3 : Public Economics→Fiscal Policies and Behavior of Economic Agents
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy

External publications

2023

SUERF Policy Brief No. 633

Gauging The Macroeconomic Effects of Higher Carbon Prices