Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/31279
Author(s): | Madeira, C. Madeira, J. Santos Monteiro, P. |
Date: | 2023 |
Title: | The origins of monetary policy disagreement: The role of supply and demand shocks |
Journal title: | Review of Economics and Statistics |
Volume: | N/A |
Reference: | Madeira, C., Madeira, J., & Santos Monteiro, P. (2023). The origins of monetary policy disagreement: The role of supply and demand shocks. Review of Economics and Statistics. https://dx.doi.org/10.1162/rest_a_01383 |
ISSN: | 0034-6535 |
DOI (Digital Object Identifier): | 10.1162/rest_a_01383 |
Keywords: | FOMC Committees Monetary policy Structural shocks Dissent |
Abstract: | We investigate how dissent in the FOMC is affected by structural macroeconomic shocks obtained using a medium-scale DSGE model. We find that dissent is less (more) frequent when demand (supply) shocks are the predominant source of inflation fluctuations. In addition, supply shocks are found to raise private sector forecasting uncertainty about the path of interest rates. Since supply shocks impose a trade-off between inflation and output stabilization while demand shocks do not, our findings are consistent with heterogeneous preferences over the dual mandate among FOMC members as a driver of policy disagreement. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica |
Files in This Item:
File | Size | Format | |
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article_98544.pdf | 1,41 MB | Adobe PDF | View/Open |
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