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Optimal Monetary Policy with Informational Frictions
We study optimal monetary policy in an environment in which firms' pricing and production decisions are subject to informational frictions. Our framework accommodates multiple formalizations of theseExpand
Noisy Business Cycles
This paper investigates a real-business-cycle economy that features dispersed information about the underlying aggregate productivity shocks, taste shocks, and, potentially, shocks to monopoly power.Expand
Real Rigidity, Nominal Rigidity, and the Social Value of Information
Does welfare improve when firms are better informed about the state of the economy and can thus better coordinate their production and pricing decisions? We address this question in an elementaryExpand
Financial Frictions in Production Networks
We study how an economy’s production structure determines the response of aggregate output and employment to sectoral financial shocks. In our framework, economic production is organized in anExpand
Sentiments ∗
This paper develops a novel theory of fluctuations, one that seeks to capture the self-fulfilling nature of short-run phenomena within an otherwise canonical neoclassical framework. In our model,Expand
Incomplete Information, Higher Order Beliefs, and Price Inertia
The question that motivates this paper is how incomplete information impacts the response of prices to nominal shocks. Our baseline model is a variant of the Calvo model in which firms observe theExpand
Cycles, Gaps, and the Social Value of Information
What are the welfare effects of the information contained in macroeconomic statistics, central-bank communications, or news in the media? We address this question in a business-cycle framework thatExpand
Dispersed Information over the Business Cycle: Optimal Fiscal and Monetary Policy !
We study how the heterogeneity of information impacts the efficiency of the business cycle and the design of optimal fiscal and monetary policy. We do so within a model that features a standardExpand
Distortions in Production Networks
How does an economy's production structure determine its macroeconomic response to sectoral distortions? We study a static framework in which production is organized in an input-output network andExpand
Confounding Dynamics*
In the context of a dynamic model with incomplete information, we isolate a novel mechanism of shock propagation. We term the mechanism confounding dynamics because it arises from agents’ optimalExpand