Format du dépôt |
Fichier |
Type de dépôt |
Article dans une revue |
Titre |
en
The price effects of monetary shocks in a network economy
|
Résumé |
en
Empirical evidence shows monetary shocks have two temporary effects on the distribution of prices. One, the dispersion of cross-section of prices increases in response to monetary shocks. Two, some prices change in the ‘wrong’ direction: some prices decrease in response to positive monetary shocks, and increase in response to negative monetary shocks. We present a model that generates the two effects of monetary shocks on the distribution of prices as an out-of-equilibrium phenomena. Firms are related to each other through a production network. Monetary shocks change the working capital of a subset of firms and percolate to other firms through buyer-seller linkages. Price dispersion increases because the percolation of a monetary shock through the production network causes prices to differentially deviate from their steady state values. Some prices change in the wrong direction because a shift in one firm’s demand causes a shift in another firm’s supply (and vice-versa), thereby generating complicated chains of bi-directional price changes. Monetary shocks can significantly disturb relative prices even when all prices are fully flexible.
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Auteur(s)
|
Antoine Mandel
1, 2
, Davoud Taghawi-Nejad
3, 4
, Vipin Veetil
5
1
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
-
Université Paris 1 Panthéon-Sorbonne UMR8174 ( 7550 )
;
-
Centre National de la Recherche Scientifique UMR8174 ( 441569 )
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
-
Université Paris 1 Panthéon-Sorbonne ( 7550 )
;
-
École normale supérieure - Paris ( 59704 )
;
-
Université Paris Sciences et Lettres ( 564132 )
;
-
École des hautes études en sciences sociales ( 99539 )
;
-
École des Ponts ParisTech ( 301545 )
;
-
Centre National de la Recherche Scientifique ( 441569 )
;
-
Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement ( 577435 )
3
University of Oxford
( 302612 )
- Wellington Square, Oxford OX1 2JD
- Royaume-Uni
4
Institute for New Economic Thinking
( 302030 )
- Eagle House, 6EA, Walton Well Rd, Oxford OX2 6ED, Oxford University,
United Kingdom
- Royaume-Uni
5
IIT Madras -
Indian Institute of Technology Madras
( 411853 )
- Chennai 600036
- Inde
|
Licence |
Paternité - Pas d'utilisation commerciale
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2019-08
|
Date de publication électronique |
2019-06-18
|
Volume |
164
|
Page/Identifiant |
300-316
|
Domaine(s) |
-
Sciences de l'Homme et Société/Economies et finances
|
Mots-clés (JEL) |
-
C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C63 - Computational Techniques • Simulation Modeling
-
C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C67 - Input–Output Models
-
D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D80 - General
-
E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E31 - Price Level • Inflation • Deflation
-
E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E52 - Monetary Policy
|
Projet(s) Européen(s) |
-
IMPRESSIONS
- Impacts and risks from higher-end scenarios: Strategies for innovative solutions
Numéro CORDIS :
603416
-
DOLFINS
- Distributed Global Financial Systems for Society
Numéro CORDIS :
640772
|
Financement |
-
Antoine Mandel and Vipin P. Veetil acknowledge support from the Horizon 2020 research and innovation programme under grant agreement No. 640772 (DOLFINS) and from the European Union 7th framework programme under grant agreement No. 603416 (IMPRESSIONS).
|
Mots-clés |
en
Prices, Money, Networks, Monetary shocks, Agent-based model, Out-of-equilibrium dynamics
|
DOI |
10.1016/j.jebo.2019.06.009 |
PII |
S0167-2681(19)30199-4 |