Optimal monetary policy in production networks with distortions ☆

被引：0
作者：
Xu, Zhihao [1 ]
Yu, Changhua [2 ]
机构：
[1] Emory Univ, Atlanta, GA USA
[2] Peking Univ, China Ctr Econ Res, Natl Sch Dev, 5 Yiheyuan Rd,Haidian, Beijing 100871, Peoples R China
来源：
JOURNAL OF ECONOMIC THEORY | 2025年 / 225卷
基金：
中国国家自然科学基金;
关键词：
Production networks; Optimal monetary policy; Supply side effect; Phillips curves; Stabilization policy; INTERMEDIATE GOODS; ORIGINS; SHOCKS; PROPAGATION;
D O I：
10.1016/j.jet.2025.105979
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper studies optimal monetary policy in a multisector economy with input-output linkages and distortions. Our model incorporates both the supply side and the demand side effects of monetary policy. We derive a tractable sufficient statistic for the supply side effect, which comprises two reallocation channels resulting from substitution between sectoral products for households and firms, and substitution between labor and intermediate inputs in production. The optimal monetary policy induces an inflation bias that stems from both an aggregate wedge and the supply side effect, and targets an inflation index by assigning higher weights to (i) larger sectors, (ii) sectors with stickier prices, and (iii) sectors with less distortions. Our quantitative results indicate that production networks play a crucial role in generating both the supply and demand effects of monetary policy.
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页数：21
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