Luca Fornaro

Luca Fornaro, a senior researcher at CREI and a professor at UPF and the Barcelona School of Economics, dives into the intricacies of hysteresis and its impact on economic growth. He discusses how downturns can cause long-term damage to productivity, leading to stagnation traps. The conversation also explores the interconnectedness of business cycles and long-term growth, as well as the role of population growth and innovation in driving economic development. Fornaro advocates for smart macroeconomic policies to stimulate recovery and address supply shocks.