Nonlinear monetary policy tradeoffs

Data de publicació electrònica: 08-12-2025

Bibliographic Details
Authors: Debortoli, Davide, Forni, Mario, Gambetti, Luca, Sala, Luca
Format: article
Status:Versión aceptada para publicación
Publication Date:2025
Country:España
Institution:Universitat Pompeu Fabra
Repository:Repositorio Digital de la UPF
OAI Identifier:oai:repositori.upf.edu:10230/72620
Online Access:https://hdl.handle.net/10230/72620
http://dx.doi.org/10.1093/ej/ueaf132
Access Level:Embargoed access
Keyword:Monetary policy
Inflation-unemployment tradeoff
Structural VAR models
Proxy-SVAR
id ES_1be63ab4828faad2ed5e5634a66264c1
oai_identifier_str oai:repositori.upf.edu:10230/72620
network_acronym_str ES
network_name_str España
repository_id_str
spelling Nonlinear monetary policy tradeoffsDebortoli, DavideForni, MarioGambetti, LucaSala, LucaMonetary policyInflation-unemployment tradeoffStructural VAR modelsProxy-SVARData de publicació electrònica: 08-12-2025We measure the inflation-unemployment tradeoff associated with monetary easing and tightening, during booms and recessions, using a novel nonlinear Proxy-SVAR approach. We find evidence of significant nonlinearities for the U.S. economy (1973:M1 - 2019:M6): stimulating economic activity during recessions is associated with minimal costs in terms of inflation, and reducing inflation during booms delivers small costs in terms of unemployment. These results can be rationalized by a simple model with downward nominal wage rigidities, which is also used to assess the validity of our empirical approach.The authors gratefully acknowledge the financial support from the Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D (Barcelona School of Economics CEX2024-001476-S) and through grants PID2024-160049NB-I00 (Debortoli) and PGC2018-094364-B-I00 (Gambetti), from the FAR 2017 Department of Economics "Marco Biagi" (Forni) and from the Italian Ministry of Research and University, PRIN 2017 grant J44I20000180001 (Forni, Gambetti and Sala).Oxford University Press2026202620252026infoinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfapplication/pdfhttps://hdl.handle.net/10230/72620http://dx.doi.org/10.1093/ej/ueaf132reponame:Repositorio Digital de la UPFinstname:Universitat Pompeu FabraInglésThe Economic Journal. 2025 Dec 08info:eu-repo/grantAgreement/ES/4PE/PID2024-160049NB-I00info:eu-repo/grantAgreement/ES/2PE/PGC2018-094364-B-I00© Oxford University Press. This is a pre-copyedited, author-produced version of an article accepted for publication in The Economic Journal following peer review. The version of record Debortoli D, Forni M, Gambetti L, Sala L. Nonlinear monetary policy tradeoffs. The Economic Journal. 2025 Dec 08. DOI: 10.1093/ej/ueaf132 is available online at: https://academic.oup.com/ej/advance-article/doi/10.1093/ej/ueaf132/8373819info:eu-repo/semantics/embargoedAccessoai:repositori.upf.edu:10230/726202026-06-12T07:21:37Z
dc.title.none.fl_str_mv Nonlinear monetary policy tradeoffs
title Nonlinear monetary policy tradeoffs
spellingShingle Nonlinear monetary policy tradeoffs
Debortoli, Davide
Monetary policy
Inflation-unemployment tradeoff
Structural VAR models
Proxy-SVAR
title_short Nonlinear monetary policy tradeoffs
title_full Nonlinear monetary policy tradeoffs
title_fullStr Nonlinear monetary policy tradeoffs
title_full_unstemmed Nonlinear monetary policy tradeoffs
title_sort Nonlinear monetary policy tradeoffs
dc.creator.none.fl_str_mv Debortoli, Davide
Forni, Mario
Gambetti, Luca
Sala, Luca
author Debortoli, Davide
author_facet Debortoli, Davide
Forni, Mario
Gambetti, Luca
Sala, Luca
author_role author
author2 Forni, Mario
Gambetti, Luca
Sala, Luca
author2_role author
author
author
dc.subject.none.fl_str_mv Monetary policy
Inflation-unemployment tradeoff
Structural VAR models
Proxy-SVAR
topic Monetary policy
Inflation-unemployment tradeoff
Structural VAR models
Proxy-SVAR
description Data de publicació electrònica: 08-12-2025
publishDate 2025
dc.date.none.fl_str_mv 2025
2026
2026
2026
info
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/10230/72620
http://dx.doi.org/10.1093/ej/ueaf132
url https://hdl.handle.net/10230/72620
http://dx.doi.org/10.1093/ej/ueaf132
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv The Economic Journal. 2025 Dec 08
info:eu-repo/grantAgreement/ES/4PE/PID2024-160049NB-I00
info:eu-repo/grantAgreement/ES/2PE/PGC2018-094364-B-I00
dc.rights.none.fl_str_mv info:eu-repo/semantics/embargoedAccess
eu_rights_str_mv embargoedAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Oxford University Press
publisher.none.fl_str_mv Oxford University Press
dc.source.none.fl_str_mv reponame:Repositorio Digital de la UPF
instname:Universitat Pompeu Fabra
instname_str Universitat Pompeu Fabra
reponame_str Repositorio Digital de la UPF
collection Repositorio Digital de la UPF
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869404191919702016
score 15,811543

Similar Items