Experts from across European universities and central banks assembled to consider key policy questions at an event co-organised by Lancaster University Management School (LUMS).

The second Non-Linearities in Macroeconomics (NLMacro) workshop welcomed participants to the Bank of England and online.

It was co-organised by Nicolò Bandera and Iryna Kaminska, of the Bank of England; Dr Stefano Fasani, of LUMS; and Professor Haroon Mumtaz, of Queen Mary University of London (QMUL).

Representatives from academic institutions such as LUMS, the University of Oxford, the University of Cambridge, University College London, and the University of Pavia, were joined by economists from the European Central Bank, the Bank for International Settlements, Deutsche Bundesbank, De Nederlandsche Bank, and global financial companies, such as Barclays, for presentations and discussions.

Bank of England economists also presented and discussed research papers, as well as engaging in the sessions.

Dr Fasani said: “The workshop addressed key policy questions, emphasising the importance of non-linearities in understanding the economy, especially during periods of heightened uncertainty such as that we are experiencing at the moment with conflicts, climate change, and the recent pandemic.

“These and other global events, as well as shifting expectations, have made the world more non-linear and challenging for policymakers to comprehend. Central banks must understand the complex nature of economic fluctuations if they are to implement monetary policy effectively and achieve inflation targets.

“The work we discussed provided evidence of the uneven distribution of economic shocks, resulting in more severe recessions and milder economic expansions.”

Bank of England Chief Economist Huw Pill delivered the opening remarks at the workshop, while the keynote speech came from Professor Giancarlo Corsetti, a leading international economics scholar, who has made pioneering contributions to currency, financial, and sovereign crises, as well as monetary and fiscal policy in open economies.

Professor Corsetti is the Pierre Werner Chair at the European University Institute, and is affiliated with Centre for Economic Policy research (CEPR), the ESRC Centre for Macroeconomics, and the British Academy. He serves on the United Nations High-level Advisory Board on Economic and Social Affairs and is an academic adviser to the Bank of England and the European Central Bank.

The workshop is part of a rotating series, with the third scheduled for Lancaster University in September 2025.