Enrico D. Turri

I am a PhD Candidate in Economics at the London School of Economics.

My research interests are in Macroeconomics.

Here you can find my CV and my LSE webpage.

You can contact me at e.turri@lse.ac.uk.

Research

Publications

How should central banks respond to commodity price shocks? Optimal monetary and exchange rate frameworks for commodity-exposed economies, with Thomas Drechsel, Michael McLeay and Silvana Tenreyro

Accepted at Journal of International Economics

NBER WP 35164, CEPR DP21518, BoE Staff WP No. 1,186

This paper shows that the optimal monetary policy and exchange rate framework depend critically on the economy’s commodity exposure. We develop a flexible but tractable model economy with commodity exports and imports, in which international financial conditions may vary with the commodity cycle. Stabilizing domestic prices is optimal for commodity exporters, in line with standard open-economy policy prescriptions. But for economies that use commodities as inputs in production, optimal policy largely ‘looks through’ the direct and indirect effects of commodity shocks on domestic prices; this contrasts with some earlier findings and policy practice (which only ‘looks through’ the direct effect). Exchange-rate pegs or strict CPI inflation targeting perform better for commodity importers because they stabilize wages and employment, though neither policy is robustly optimal. In emerging and developing economies, where financial conditions are more tied to the commodity cycle, trade-offs are starker and implementing the optimal policy may be challenging, since it requires enough credibility to keep inflation expectations anchored amidst greater volatility in some nominal variables.

Working Papers

Human, All Too Human Growth How do habits and interpersonal comparisons interact with economic growth? Under the standard macroeconomic formulation, a Cobb-Douglas aggregator of absolute and relative consumption nested in CRRA utility, a folk theorem holds: in canonical growth models, naive and sophisticated solutions deliver identical growth rates, observationally equivalent to a non-behavioural model with reparametrised utility curvature. This formulation, however, fails to capture that when absolute consumption increases, habits and comparisons become more salient. A minimal CES generalisation with complementarity is able to capture this intuition and breaks the folk theorem, implying inefficiently high growth, overwork, and rising inequality aversion along development. Monopsony in Growth Theory, with Pietro Garibaldi

CEPR DP19652

The secular decline in the labor share and the long-run reduction in labor supply suggest that imperfect labor markets can play a role in long-run economic growth. Unlike rising markups, rising wage markdowns are compatible with a balanced growth path featuring declining labor share and constant capital-output ratio. We introduce oligopsony and oligopoly power in a neoclassical growth model with superstar firms and an inferior sector which represents workers’ outside option. Faster TFP growth in the superstar sector with respect to the inferior sector generates an endogenously increasing markdown, the driver of growth misallocation. The model can be calibrated to simultaneously match the joint trends of GDP growth, declining labor share, and hours worked. For the US, the consumption-equivalent loss with respect to the optimal growth path is around 7.5 percent. An extension of the model with hand-to-mouth workers and capitalists delivers balanced growth with increasing inequality. While—in this context— proportional taxation distorts equilibrium labor supply, a rising minimum wage can restore efficient growth.

Research Notes

Log Linearisation as a Coordinate Representation of Taylor Expansion

Abstract

Macroeconomists commonly approximate nonlinear models using log linearisation, whereas mathematics and the physical sciences typically rely on Taylor expansions in levels. This note shows that the distinction is purely representational: log linearisation is a particular coordinate representation of a Taylor expansion. By separating the order of approximation from the choice of deviation metric, I derive explicit second-order mappings between log and per-unit deviations and show that, when handled consistently, they yield equivalent local approximations of economic equilibrium conditions. The analysis also clarifies the role of coordinate choice in practice. Multiplicative relationships become additive in log coordinates, while additive identities remain exact in per-unit form. As a result, when a model’s equilibrium conditions are predominantly multiplicative, log deviations provide a particularly convenient representation. The note therefore offers both a conceptual unification of common approximation practices and a transparent procedure for deriving second-order approximations.

Teaching

In the next academic year I will teach the first-year course in Macroeconomics for the PhD in Economics at LSE.

In the academic year 2025/26 I taught International Economics, Geoeconomics and Economic Policy Analysis.

I previously taught undergraduate courses in Macroeconomics and Microeconomics and I am an Associate Fellow of Advanced HE.