Davide Debortoli, Mario Forni, Luca Gambetti, and Luca Sala use a new approach to measure the inflation-unemployment tradeoff associated with monetary easing and tightening during booms and recessions in the US economy.
Régis Barnichon and Geert Mesters propose a new way to evaluate and compare the performance of macroeconomic policy makers and institutions.
Mridula Duggal and Luis E. Rojas develop a theoretical framework on the success of Chile and Colombia during their battle against high inflation in the 1990s. Their research provides valuable insights into how central banks with limited credibility and independent monetary policy can manage the tradeoff between low inflation and associated output losses.
With year-on-year inflation rates reaching 10% in 2022, central banks in Europe and the United States started raising monetary policy rates to ensure price stability. The failure of Silicon Valley Bank (SVB) on March 10, 2023, however, laid bare the financial stability risks from hiking interest rates after a prolonged period of rate cuts. For…