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来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w28345 |
来源ID | Working Paper 28345 |
The Supply-Side Effects of Monetary Policy | |
David Baqaee; Emmanuel Farhi; Kunal Sangani | |
发表日期 | 2021-01-18 |
出版年 | 2021 |
语种 | 英语 |
摘要 | We propose a supply-side channel for the transmission of monetary policy. We show that in an economy with heterogeneous firms and endogenous markups, demand shocks have first-order effects on aggregate productivity. If high-markup firms have lower pass-throughs than low-markup firms, as is consistent with the empirical evidence, then a monetary easing reallocates resources to high-markup firms and alleviates misallocation. In this case, positive “demand shocks” are accompanied by endogenous positive “supply shocks” that raise output and productivity, lower inflation, and flatten the Phillips curve. We derive a tractable four-equation dynamic model and use it to show that monetary shocks generate a procyclical hump-shaped response in TFP and endogenous cost-push shocks in the New Keynesian Phillips curve. A calibration of the model suggests that the supply-side effect increases the half-life of a monetary shock’s effect on output by about 30% and amplifies the cumulative effect on output by about 70%. We provide empirical evidence of the micro-level reallocations that generate procyclical TFP using identified monetary shocks. |
主题 | Macroeconomics ; Macroeconomic Models ; Consumption and Investment ; Business Cycles ; Money and Interest Rates ; Monetary Policy ; Industrial Organization ; Market Structure and Firm Performance ; Development and Growth ; Growth and Productivity |
URL | https://www.nber.org/papers/w28345 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/586017 |
推荐引用方式 GB/T 7714 | David Baqaee,Emmanuel Farhi,Kunal Sangani. The Supply-Side Effects of Monetary Policy. 2021. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w28345.pdf(787KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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