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Paola Di Casola

International & European Relations

Division

External Developments

Current Position

Senior Economist

Fields of interest

Macroeconomics and Monetary Economics,Financial Economics,International Economics

Email

paola.di_casola@ecb.europa.eu

Education
2010-2015

Ph.D in Economics, Stockholm School of Economics.

2008-2009

MSc in Economics and Econometrics (with Distinction), University of Southampton.

2006-2008

Laurea Specialistica (MSc) in Statistical Sciences (with Distinction), Universita' La Sapienza di Roma.

2003-2006

Laurea Triennale (Bsc) in Statistical Sciences (with Distinction), Universita' La Sapienza di Roma.

Professional experience
2021-

Senior Economist, ECB

2018-2021

Senior Economist, Monetary Policy Department, Sveriges Riksbank

2015-2018

Economist, Monetary Policy Department, Sveriges Riksbank

2010

Internship at Bank of Italy.

2009-2010

Internship at ECB.

Awards
2015

Peter Högfeldt Award for Outstanding PhD Thesis in Economics, Stockholm School of Economics

Teaching experience
2011-2014

Teaching assistant for Microeconomics, Macroeconomics, Economics of Organization.

23 September 2024
ECONOMIC BULLETIN - BOX
Economic Bulletin Issue 6, 2024
Details
Abstract
Labour productivity growth in the euro area remains significantly below its pre-pandemic levels, whereas in the United States it is largely in line with the pre-pandemic trend. The slower growth in euro area labour productivity has been broadly based across sectors. This discrepancy in productivity growth between the two regions partly stems from the higher procyclicality of labour productivity in the euro area. However, structural factors are also likely to play a significant role in explaining productivity differences between the two regions and are rooted in weak contributions from capital accumulation and innovation in the euro area. These factors have arguably been present since well before the pandemic.
JEL Code
E24 : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Employment, Unemployment, Wages, Intergenerational Income Distribution, Aggregate Human Capital
E32 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Business Fluctuations, Cycles
E60 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→General
8 November 2023
WORKING PAPER SERIES - No. 2868
Details
Abstract
We analyse the drivers of Bitcoin transactions against 44 fiat currencies in the largest peer-to-peer crypto exchanges. Momentum and volatility in the cryptoasset market, as well as volatility and liquidity in global financial markets do matter for Bitcoin trading. There is suggestive evidence of a global crypto cycle driven by speculative motives. However, in emerging and developing economies (EMDEs), Bitcoin seems to offer also transactional benefits, since trading increases when the value of the domestic currency is unstable. Proxies of banking depth and digitalisation are negatively correlated with the currency loadings on the global factor, indicating that crypto-assets may offer a speculative alternative to traditional finance when this is not available, especially in EMDEs where the share of younger risk-prone population is higher. Our results clearly point to potential financial stability risks from cryptoisation in EMDEs with low levels of financial development and unstable fiat currencies.
JEL Code
E42 : Macroeconomics and Monetary Economics→Money and Interest Rates→Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems
F21 : International Economics→International Factor Movements and International Business→International Investment, Long-Term Capital Movements
F24 : International Economics→International Factor Movements and International Business→Remittances
F32 : International Economics→International Finance→Current Account Adjustment, Short-Term Capital Movements
F38 : International Economics→International Finance→International Financial Policy: Financial Transactions Tax; Capital Controls
G15 : Financial Economics→General Financial Markets→International Financial Markets
O33 : Economic Development, Technological Change, and Growth→Technological Change, Research and Development, Intellectual Property Rights→Technological Change: Choices and Consequences, Diffusion Processes
10 August 2023
ECONOMIC BULLETIN - BOX
Economic Bulletin Issue 5, 2023
Details
Abstract
This box uses structural BVAR models applied to global macroeconomic data to provide evidence that monetary policy is transmitted more strongly to consumption in countries with higher shares of homeowners with mortgages, higher levels of household debt and higher shares of adjustable-rate mortgages, although the evidence for the latter is weaker. Since the previous hiking cycle, the shares of homeowners with mortgages and the levels of household debt have risen in the euro area, with countries increasingly resembling each other in this regard. This means that aggregate monetary policy transmission through the housing channel may, if anything, be stronger and more even across euro area countries in the current cycle than in past hiking cycles.
JEL Code
E21 : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Consumption, Saving, Wealth
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
R21 : Urban, Rural, Regional, Real Estate, and Transportation Economics→Household Analysis→Housing Demand
21 June 2023
THE INTERNATIONAL ROLE OF THE EURO - SPECIAL FEATURE
The international role of the euro 2023
Details
JEL Code
:
14 June 2022
THE INTERNATIONAL ROLE OF THE EURO - BOX
The international role of the euro 2022
25 May 2022
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 1, 2022
Details
Abstract
House prices increased substantially in advanced economies during the pandemic, fuelling concerns about possible price reversals and their implications for financial stability. Shifts in housing preferences, possibly reflecting a desire for more space coupled with less need for commuting due to teleworking modalities, and low interest rates have been important drivers of such recent strong house price growth across advanced economies. In the current low interest rate environment, increased sensitivity of house price growth to changes in real interest rates makes substantial house price reversals more likely. An abrupt repricing in the housing market – if the demand for housing were to go into reverse, for example, with a return to pre-pandemic work modalities, or real interest rates were to rise significantly – could produce spillovers to the wider financial system and economy.
JEL Code
E43 : Macroeconomics and Monetary Economics→Money and Interest Rates→Interest Rates: Determination, Term Structure, and Effects
R21 : Urban, Rural, Regional, Real Estate, and Transportation Economics→Household Analysis→Housing Demand
R30 : Urban, Rural, Regional, Real Estate, and Transportation Economics→Real Estate Markets, Spatial Production Analysis, and Firm Location→General
2022
Journal of International Money and Finance
  • Vesna Corbo