socially desirable. I consider an environment with dispersed information and two aggregate shocks: a productivity shock and a … "news shock" which affects aggregate beliefs. Neither the central bank nor individual agents can distinguish the two shocks …

appointment of Volcker marked a change in the conduct of monetary policy, but inflation dropped only when fiscal policy … accommodated this change two years later. In fact, a disinflationary attempt of the monetary authority leads to more inflation if … been confident about the switch, the Great Inflation would not have occurred and debt would have been higher. This is …

not. However, he assumes that agents can directly observe the monetary policy shock. Reversing this assumption, I find the … that a threat by the Fed to move to an "unlearnable" equilibrium for all but one value of inflation is a poor foundation …

does not tighten monetary policy. Imported energy inflation can spill over to wage inflation through a wage-price spiral …, but this does not mitigate the decline in real wages. Monetary tightening has limited effect on imported inflation when … demand. Fiscal policy, especially energy price subsidies, can isolate individual energy importers from the shock, but it has …

and data. Second, because the NK model's predictions differ by the nature of the shock, we present evidence on the … procyclical conditional on a technology shock. However, we find that they are either procyclical or acyclical conditional on …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high …

inflation, with emphasis on the role of oil shocks and accommodative monetary policy. The model features oil as a complementary … VAR. We then show that our model does a good job of explaining unemployment and inflation since 2010, including the recent … inflation surge that began in mid 2021. We show that mainly accounting for this surge was a combination oil price shocks and …