SEMINAR SERIES
Macroeconomics Seminar (Joint with Microeconomics and Game Theory, KIER ; Macroeconomics and Economic Systems Workshop, KIER)
Joel Flynn（Assistant Professor at Yale University）
- Date&Time:
- 2025.10.22 (Wed) 17:00-18:30
- Venue:
- Room N101/102 on 1F, Kyoto Institute of Economic Research, North Bldg., Yoshida Campus, Kyoto University
- Language:
- English
- Contact:
- Shinichi NISHIYAMA
"What can Measured Beliefs Tell Us About Monetary Non-Neutrality? "
(with Hassan Afrouzi and Choongryul Yang)
Abstract:
This paper studies how measured beliefs can be used to identify monetary non-neutrality. In a general equilibrium model with both nominal rigidities and endogenous information acquisition, we analytically characterize firms' optimal dynamic information policies and how their beliefs affect monetary non-neutrality. We then show that data on the cross-sectional distributions of uncertainty and pricing durations are both necessary and sufficient to identify monetary non-neutrality. Finally, implementing our approach in New Zealand survey data, we find that informational frictions approximately double monetary non-neutrality and endogeneity of information is important: models with exogenous information would overstate monetary non-neutrality by approximately 50%.