We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from[...]

A resolution of the missing deflation puzzle is proposed. Our resolution stresses the importance of nonlinearities in price- and wage-setting when the economy is exposed [...]

Sectoral responses to oil price shocks help determine how these shocks are transmitted throughout the economy. Textbook treatments of oil price shocks often emphasize neg[...]

Average hourly wages from the Labor Productivity and Costs (LPC) program, the Current Population Survey (CPS) and the Current Employment Statistics (CES) survey have dive[...]

Business cycles are substantially correlated across countries. Yet, most existing models are not able to generate substantial transmission through international trade. We[...]

This report provides a detailed technical description of an updated version of the Terms-of-Trade Economic Model (ToTEM II), which replaced ToTEM (Murchison and Rennison [...]

We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data [...]

We examine the evolution of the effects of monetary policy shocks on the distribution of disaggregate prices and quantities of personal consumption expenditures to assess[...]

This paper builds a two-country DSGE model to study the quantitative impact of financial frictions on business cycle co-movements when investors have foreign asset exposu[...]

This paper studies the sensitivity of Canadian producer prices to the Canada-U.S. exchange rate. Using a unique product-level price data set, we estimate and analyze the [...]