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

aggregate inflation. Quantitatively, we confirm the significant role of production networks in shock propagation, emphasizing …We derive closed-form solutions and sufficient statistics for inflation and GDP dynamics in multi-sector New Keynesian … of inflation and GDP responses to monetary and sectoral shocks and (2) increase the pass-through of sectoral shocks to …

an uncertainty shock. We find a significantly stronger response of real activity in recessions. Counterfactual …

rational private sector expectations about housing prices and inflation, optimal monetary policy can be characterized by a … standard 'target criterion' that refers to inflation and the output gap, without making reference to housing prices. When the … increases (decreases), policy should adopt a stance that is projected to undershoot (overshoot) its normal targets for inflation …

How should central banks optimally aggregate sectoral inflation rates in the presence of imperfect labor mobility … mobility, ceteris paribus, increases the optimal weight on inflation in a sector that would otherwise receive a lower weight … computing sectoral inflation weights based solely on sector size, and unveil a significant role for the degree of sectoral labor …

prominent role is played by the fall of households' purchasing power, and hence consumption, owing to the inflation shock visà …The resurgence of inflation since the late 2021 is now accompanied by a reversal of prospects of growth, reviving fears … inflation surprises, independent of restrictive monetary policy, is not present in the standard New Keynesian models for …