Banque de France – Toulouse School of Economics Prize for Distinguished Scholars, Seminar with Veronica Guerrieri

Place and dates

7 October 2026, from 3.00 pm to 4.30 pm

Content and participants

Professor of Economics at the University of Chicago Booth School of Business
Co-winner of the 2026 Banque de France – Toulouse School of Economics Prize for Distinguished Scholars

Veronica Guerrieri will present the paper “Global Price Shocks and International Monetary Coordination” (joint work with Guido Lorenzoni and Iván Werning) on Wednesday, October 7, 2026, from 3:00 to 4:30 p.m., in the Conference Area – Room 1.

Abstract

When a central bank seeks to stabilize domestic inflation, it typically takes global supply conditions as given. Yet global economic conditions — including commodity prices, shipping costs, prices of tradable intermediate goods, and disruptions in global supply chains — are also influenced by the combined actions of monetary authorities around the world.

This paper studies how the lack of international monetary policy coordination can affect the global response to adverse supply shocks. The authors show that, in a world economy with integrated commodity markets, individually optimal monetary policies may generate an expansionary bias from a global perspective, leading to stronger global demand pressures and potentially amplifying inflationary effects.

The paper derives conditions under which this coordination problem emerges and highlights the role of international monetary interactions in shaping the global inflation outlook.

The Banque de France's research seminars present a paper on economics or financial stability by:

• a Banque de France's staff researcher (in which case they last 1h30 and give rise to a Banque de France Working Paper)
• a visiting researcher, particularly those related to the Banque de France's research partnerships

Language

English