It is no coincidence, therefore, that the champion of the new economy, the United States, achieved its greatest advances in an era of low inflation. A third issue, crucial for monetary policymakers, is the question of how to react to the new economy. Let me simplify matters by conceptualising the new economy as a shock to productivity.
Moreover the ECB regularly funds policy-relevant academic research via the Lamfalussy Fellowship. In 2010, the Eurosystem launched the Macroprudential Research Network MaRs with the objective to develop core conceptual frameworks, models and tools that would provide research support in order to improve macro-prudential supervision in the European Union. Lasse Pedersen’s research focuses on the role of liquidity in financial markets.