Advanced economies are undergoing a structural transformation from manufacturing to services. We document that … structural change comes with a process of services deepening: over time, both services and manufacturing become more intensive in … service inputs. We argue that structural transformation and services deepening affect the transmission of monetary policy by …

their spending more evenly across a wider variety of goods and services. Comparing cross sectional spending patterns across …

richer workers demand more low skill-intensive services (such as cleaning and personal services) but also more skill …-intensive services (such as education and professional services). The parametrization of a simple model suggests that this induced demand …