Enrico D. Turri

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

I visited MIT for the fall 2025 term.

My research focuses on macroeconomic theory and I am passionate about growth.

Here you can find my CV (updated on Dec 2025) and my LSE webpage.

Research

Monopsony in Growth Theory, with Pietro Garibaldi

CEPR Discussion Paper 19652

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. This paper introduces monopsony in a Neoclassical Growth Model with monopolistic superstar firms. The endogenous markdown of productivity on wages is the key driver of growth misallocation in the asymptotic balanced growth path. Labor market imperfections in superstar firms induce “growth” effects on the labor share and hours worked, even when preferences imply that income and substitution effects of wage changes cancel each other out. The consumption equivalent loss with respect to the optimal growth path is calibrated between 15 and 20 percent, depending on the assumed set of preferences. The theory is not only coherent with the dynamics of the labor share and hours worked in advanced economies, but also with time varying markdown in the US estimated from a simple accounting exercise. 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

R&R at Journal of International Economics

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.

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 academic year 2025/26 I am teaching International Economics, Geoeconomics and Economic Policy Analysis at LSE.

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