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Martin Wolf
Title
Prof. Dr.
Last Name
Wolf
First name
Martin
Email
martin.wolf@unisg.ch
ORCID
Phone
+41 71 224 25 82
Now showing
1 - 9 of 9
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PublicationThe Scars of Supply Shocks: Implications for Monetary PolicyWe study the effects of supply disruptions - for instance due to energy price shocks or the emergence of a pandemic - in an economy with Keynesian unemployment and endogenous productivity growth. By temporarily disrupting investment, negative supply shocks generate permanent output losses - or scarring effects. By inducing a negative wealth effect, scarring effects depress aggregate demand, which may even fall below the exogenous fall in supply. However, that scarring effects depress aggregate demand does not necessarily translate into low rates of inflation. On the contrary, scarring effects may reinforce and prolong the inflationary impact of supply disruptions. A contractionary monetary policy response may end up deepening scarring effects and increasing inflation in the medium run. A successful disinflation may require a policy mix of monetary tightening and fiscal interventions aiming at supporting business investment and the economy’s productive capacity.Type: journal articleJournal: Journal of Monetary EconomicsVolume: 140
Scopus© Citations 10 -
PublicationType: journal articleJournal: Journal of International EconomicsIssue: 139
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PublicationType: conference paper
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PublicationType: conference paper
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PublicationDelayed Overshooting: The Case for Information Rigidities( 2024)
;Gernot J. MüllerThomas HettigWe provide evidence that the delayed overshooting puzzle reflects a slow adjustment of exchange rate expectations to monetary policy shocks rather than a failure of uncovered interest parity. Consistent with this evidence, we put forward a New Keynesian model in which uncovered interest parity holds, but there are information rigidities: investors do not observe monetary policy shocks but learn rationally from unanticipated shifts in monetary policy about the state of the economy. We estimate the model and find it can account for the joint responses of the spot exchange rate, forward exchange rates, and excess currency returns to monetary policy shocks. (JEL D83, E12, E31, E43, E52, F31)Type: journal-articleJournal: American Economic Journal: MacroeconomicsVolume: 16Issue: 3 -
PublicationType: journal-articleJournal: Journal of Monetary EconomicsVolume: 116
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PublicationExit expectations and debt crises in currency unions( 2019)
;Alexander Kriwoluzky ;Gernot J. MüllerType: journal-articleJournal: Journal of International EconomicsVolume: 121 -
PublicationStep away from the zero lower bound: Small open economies in a world of secular stagnation( 2019)
;Giancarlo Corsetti ;Eleonora Mavroeidi ;Gregory ThwaitesType: journal-articleJournal: Journal of International EconomicsVolume: 116 -
PublicationDeleveraging, deflation and depreciation in the euro area( 2016)
;Dmitry Kuvshinov ;Gernot J. MüllerType: journal-articleJournal: European Economic ReviewVolume: 88