Speaker: Dr. Changhua Yu

Title: Production Networks and Supply-Side Effect of Monetary Policy

Schedule: Nov 14, Tu 1:30-3:00 PM

Location: 诚明楼 (Chengming Hall）RM 315

Introduction: 余昌华，北京大学博雅青年学者、北京大学国家发展研究院长聘副教授、教育部长江青年学者，博士生导师。2012年毕业于英属哥伦比亚大学（UBC），获经济学博士。在此之前，先后就读于中国人民大学（法学学士）和北京大学（经济学硕士）。主要研究方向为国际金融、货币政策、金融市场与宏观经济，在国内外经济学顶级刊物 Review of Economic Studies、Journal of International Economics、Journal of Monetary Economics、The Economic Journal、《金融研究》、《经济学（季刊）》等发表多篇学术论文。

Abstract: This paper studies the supply-side effect of monetary policy in a multisector economy with input-output linkages. We derive a tractable sufficient statistic for the supply-side effect. The optimal monetary policy leads to an inflation bias due to both initial markups and the supply side effect, and stabilizes a price index by assigning greater weights to (i) larger industries, (ii) industries with stickier prices, and (iii) industries with lower initial markups. In a calibrated model, monetary policy has a strong impact on the supply side of the economy. Without production networks, the supply-side effect of monetary policy declines substantially.