The Bank of Italy released five new economic research Working Papers (Nos. 1529–1533) alongside Newsletter on the economic research No. 82. The papers cover deposit funding and monetary policy transmission, how inflation information affects firms’ expectations, macroeconomic effects of the euro area green transition, modelling approaches for climate policy, and profit shifting through intragroup lending. Working Paper No. 1533 studies deposit funding, market power and the transmission of monetary policy, including deposit rate pass-through and ECB-related dynamics using Bayesian VAR models and state-dependent panel instrumental-variable local projections. No. 1532 examines overconfident forecasters and the effect of inflation information using evidence from a randomized survey experiment on firms’ belief updating. No. 1531 analyses the euro area green transition and critical mineral bottlenecks with a dynamic general equilibrium model that incorporates energy policies and monetary policy. No. 1530 sets out core modelling building blocks for climate policies, including the carbon cycle, damages, externalities, Pigouvian taxes and discounting. No. 1529 measures profit shifting via intragroup lending, comparing debt-structure and interest-rate channels for multinationals, including debt bias and transfer-pricing considerations.
Bank of Italy 2026-04-23
Bank of Italy publishes five new Working Papers and Research Newsletter No. 82
The Bank of Italy published five new Working Papers (Nos. 1529–1533) and Newsletter No. 82 on economic research, covering deposit funding and monetary policy transmission, firms’ inflation expectations, macroeconomic effects of the euro area green transition, climate policy modelling, and profit shifting via intragroup lending. The research employs Bayesian vector autoregressions, randomized survey experiments, dynamic general equilibrium modelling and analyses of multinationals’ debt structures and transfer pricing.