The Macroeconomic implications of learning by shopping
Empirical evidence suggests that consumers rely on their shopping experiences to form beliefs about inflation. In other words, they learn by shopping. This dissertation studies the implications of this information friction for the transmission of macroeconomic shocks and the design of monetary polic...
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| Formato: | tesis doctoral |
| Estado: | Versión publicada |
| Fecha de publicación: | 2022 |
| País: | España |
| Recursos: | CBUC, CESCA |
| Repositorio: | TDR. Tesis Doctorales en Red |
| OAI Identifier: | oai:www.tdx.cat:10803/675786 |
| Acesso em linha: | http://hdl.handle.net/10803/675786 |
| Access Level: | acceso abierto |
| Palavra-chave: | Inflation Inflación Macroeconomic implications Implicaciones macroeconómicas 33 |
| Resumo: | Empirical evidence suggests that consumers rely on their shopping experiences to form beliefs about inflation. In other words, they learn by shopping. This dissertation studies the implications of this information friction for the transmission of macroeconomic shocks and the design of monetary policy. Chapter 1 introduces learning by shopping in a New Keynesian model. It shows that the information friction propagates demand shocks while making the slope of the Phillips curve depend on the monetary policy stance. Chapter 2 studies the ability of the central bank to stabilize the economy in this model by following a simple interest rate rule. It finds that a stronger version of the Taylor principle is required to achieve this goal. Finally, Chapter 3 extends the model by assuming consumers also learn about relative prices by shopping. In this case, the information friction allows output and price-markups to increase simultaneously after a demand shock. |
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