- Monetary Policy with Persistent Supply Shocks🔍
- DP19678 Monetary Policy with Persistent Supply Shocks🔍
- The scars of supply shocks🔍
- The Scars of Supply Shocks🔍
- “Monetary policy in the face of supply shocks🔍
- Monetary policy in an era of supply headwinds🔍
- Full article🔍
- Monetary Policy Inertia or Persistent Shocks🔍
Monetary Policy with Persistent Supply Shocks
Monetary Policy with Persistent Supply Shocks
This paper studies monetary policy in a New Keynesian model with persistent supply shocks, that is, sustained increases in production costs due ...
DP19678 Monetary Policy with Persistent Supply Shocks - CEPR
This paper studies monetary policy in a New Keynesian model with persistent supply shocks, that is, sustained increases in production costs ...
Monetary Policy with Persistent Supply Shocks | Publications - CESifo
This paper studies monetary policy in a New Keynesian model with persistent supply shocks, that is, sustained increases in production costs due to factors ...
The persistent supply shock distorts the SSS, creating an incentive for the central bank to loosen monetary policy to reduce the average markup.
The scars of supply shocks: Implications for monetary policy
Monetary policy can single-handedly dampen the inflationary impact of supply disruptions, by slowing the economy and inducing a negative output gap. The New ...
By temporarily disrupting investment, negative supply shocks generate permanent output losses - or scarring effects. By inducing a negative wealth effect, ...
“Monetary policy in the face of supply shocks: the role of inflation ...
23 And because the household consumes out of permanent rather than current income, the effects of the terms-of-trade shock on demand are also ...
Monetary policy in an era of supply headwinds
Adverse supply shocks may also become more persistent and have long-lasting or even permanent effects on supply capacity. In fact, some of ...
Full article: Monetary policy: adapting to structure and to shocks
Results show that uncertainty shocks prompt responses on both sides of the market by shifting aggregate demand and supply curves leftward. The ...
While the optimal monetary policy involves closing the output gap, it does not steer output back to its pre-shock trend. Therefore, a permanent drop in the ...
Monetary Policy Inertia or Persistent Shocks: A DSGE Analysis
We use the estimated short-run semi-elasticity of money demand to the nominal interest rate (1.1846) to calibrate ηi. Notice that, in the course of estimation, ...
Supply Shocks, Inflation, and the Limits of Monetary Policy
The principal policy response to inflation has come from the Federal Reserve, which is raising interest rates to reduce demand for goods, ...
Monetary policy and the persistent aggregate effects of wealth ...
Monetary easing redistributes from savers, some of whom are retired and not adjusting labor supply, to borrowers who reduce their labor supply.
Supply Shocks and Monetary Policy Revisited
not those of the National Bureau of Economic Research. Page 2. NBER Working Paper #1301. March 1984. Supply Shocks and Monetary Policy Revisited.
Optimal monetary policy in an economy with inflation persistence
4 These other supply shocks are shocks to agents disutility of working and shocks to the production function. J. Steinsson / Journal of Monetary Economics 50 ( ...
Supply Shocks and Monetary Policy Revisited - jstor
But a shock expected to have a permanent effect on output and the real wage poses a serious dilemma for the parties in wage negotiations, and may well lead to a ...
Has the Inflation Process Become More Persistent? Evidence from ...
The consequences of the supply shock are considerably more adverse with higher inflation persistence. Inflation reaches 3.75 percent in 2025, ...
Supply shocks were the most important source of inflation in 2021 ...
To the extent that demand contributed to the surge in inflation, higher policy rates were necessary. In addition, higher inflation directly ...
Supply or Demand? Policy Makers' Confusion in the Presence of ...
... demand-driven shocks and permanent shocks in order to design optimal aggregate demand policies ... Monetary Policy · Banking · Financial ...
The scars of supply shocks: Implications for monetary policy
On the contrary, scarring effects may reinforce and prolong the inflationary impact of supply disruptions. A contractionary monetary policy response may end up ...