000			01123nam a22001457a 4500
999			_c523670 _d523670
008			230918b ||||| |||| 00| 0 eng d
100			_aCaballero, Ricardo J.and Simsek, Alp _943775
245			_aA note on temporary supply shocks with aggregate demand inertia
260			_aThe American Economic Review: Insights
300			_a5(2), Jun, 2023: p.241-258
520			_aWe study optimal monetary policy during temporary supply contractions when aggregate demand has inertia and the central bank is concerned about future constraints on expansionary policy. In this environment, it is optimal to run the economy hot until supply recovers. However, the policy does not remain loose throughout the low-supply phase. Overall, when the initial aggregate demand is low, the goal is to frontload the rate cuts to raise demand in anticipation of the recovery of supply. If inflation also has inertia, the central bank still overheats the economy during the low-supply phase but gradually cools it down over time.- Reproduced
773			_aThe American Economic Review: Insights
906			_aMONETARY POLICY
942			_cAR