“GDP behavior stems from the aggregation of individual decisions”

Awarded the 17th BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management, economist Jordi Galí explains how his work, in collaboration with Mark Gertler and Richard Clarida, demonstrated the benefits of central banks following predictable monetary policy rules within the New Keynesian framework. He also highlights his contributions to the empirical analysis of these rules and their extension to open economies and labor markets with frictions, establishing a key reference framework for modern macroeconomics.

The BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category in this seventeenth edition has gone to Professors Olivers Blanchard, Jordi Galí and Michael Woodford for “profoundly influencing modern macroeconomic analysis by establishing rigorous foundations for the study of business cycle fluctuations.”