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policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …
Persistent link: https://www.econbiz.de/10012464255
public finances. We show that when the ECB misses its inflation target this has large heterogeneous fiscal consequences for … missing their inflation targets. They are also sizeable …
Persistent link: https://www.econbiz.de/10013537713
constructed by only controlling for the staff forecasts imply responses of macro variables at odds with theory. We directly link …
Persistent link: https://www.econbiz.de/10014544696
Our current inflation stemmed from a fiscal shock. The Fed is slow to react. Why? Will the Fed's slow reaction spur … high real interest rates. Price stickiness means inflation will persist past an initial shock. To reduce inflation, fiscal … more inflation? I write a simple model that encompasses the Fed's mild projections and its slow reaction, and traditional …
Persistent link: https://www.econbiz.de/10013210124
We document how supply-chain pressures, household inflation expectations, and firm pricing power interacted to induce … the pandemic-era surge in consumer price inflation in the euro area. Initially, supply-chain pressures increased inflation … through a cost-push channel and raised inflation expectations. Subsequently, the cost-push channel intensified as firms with …
Persistent link: https://www.econbiz.de/10014421216
to the 2021-2023 inflation surge through the lens of several different empirical methodologies--event studies, vector … through a disinflationary channel in the Phillips curve while monetary and fiscal stimuli put positive pressure on inflation …
Persistent link: https://www.econbiz.de/10015094886
inflation, building on our earlier work for the United States. Globally, as in the United States, pandemic-era inflation was due … bank inflation targets. As the effects of supply shocks have subsided, tight labor markets, and the rises in nominal wages …, have become relatively more important sources of inflation in many countries. In several countries, including the United …
Persistent link: https://www.econbiz.de/10014544809
This paper considers a simple quantitative model of output, interest rate and inflation determination in the United … model matches the estimates responses to a monetary policy shock quite well and, once due account is taken of other … disturbances, can account for our data nearly as well as an unrestricted VAR. The monetary policy rule that most reduces inflation …
Persistent link: https://www.econbiz.de/10012472266
inflation in the expected directions. Analysis of available policy records suggests that a contractionary monetary shock likely … impacts on real GDP and inflation in 2023 and 2024 …
Persistent link: https://www.econbiz.de/10014250187
In the past decade, a new paradigm for fiscal and monetary policy analysis has emerged, combining the canonical macro model of income and wealth inequality with the New Keynesian model. These Heterogeneous-Agent New Keynesian ("HANK") models feature new transmission channels and allow for the...
Persistent link: https://www.econbiz.de/10015072932