3/3 The inflationary impact depends crucially on how demand adjusts. The pace of fragmentation and key structural features of the economy shape inflationary pressures and the appropriate monetary policy response.
1/3🧵Happy to share our latest paper, “Trade Fragmentation, Inflationary Pressures and Monetary Policy,” forthcoming in the Journal of International Economics. https://t.co/e5v8eUlznA
Grateful to have had the chance to work with @MariaLudovicaSA and Silvana Tenreyro on this!
2/3 We show that the inflationary impact of trade fragmentation is not just about supply. Higher import prices or lower productivity raise marginal costs, but they also affect aggregate demand through lower real incomes.
2/ Underlying paper by Jenny Chan (BoE), Sebastian Diz (Central Bank of Paraguay) + Derrick Kanngiesser (BoE) is forthcomming in the Journal of Monetary Economics https://t.co/KflPNe8jWQ
🧵 Latest BU post outlines a model to capture the direct adverse effects of energy price shocks on aggregate demand. Shows how the transmission of energy price shocks differs from other supply shocks. https://t.co/QmrMKWqku5
SWP 1041 by Jenny Chan (BoE), Sebastian Diz (CBP) and Derrick Kanngiesser (BoE) develop a model to show that energy price shocks have aggregate demand and aggregate supply effects.
https://t.co/TVtlDGvxqG
New @BoE_Research SWP: "Granular Banking Flows and Exchange-Rate Dynamics" with Balduin Bippus and Daniel Ostry. In the paper, we document the granular origins and causal effects of cross-border flows for FX dynamics. @CamEcon, @janewayinst 1/n
https://t.co/URIy2YPjYT
🚨Final call for applying to our PhD programme! 🚨
Applications close tomorrow, 15 November (1200 UK time, 1300 CET, 0700 EST). Best of luck to all job market candidates!
📣Calling all PhD students, PhD supervisors + mid-career researchers!📣
We're hosting a webinar on 18 Oct about research at the BoE. Your chance to find out about our new research agenda PhD internships, PhD hiring + mid-career recruitment. [Please RT]
https://t.co/TT1tBC7ebI
This year’s JMCs at Pompeu Fabra are really impressive 👏🏽All of them have several papers, most already published or R&R at great journals. Great to see this new cohort working with each other and the faculty @econ_empresaUPF on so many cool topics! Check them out 👇🏽👇🏽