Estimados Académicos y Académicas FEN,

Les extendemos la invitación al seminario que organiza el Departamento de Economía, en el que se presentará el trabajo titulado "Strike the iron while it's hot: optimal monetary policy with S,s pricing".

Expone: Ernesto Pastern, economista senior, Banco Central de Chile.

Coautores: Galo Nuño, Peter Karadi, Anton Nakov y Dominik Thaler.

Abstract: We study the Ramsey optimal monetary policy in a state-dependent pricing framework. The model captures the endogenous increase in the repricing rate after large shocks, as experienced during the recent inflation surge. A novel insight is that in response to large cost-push shocks optimal policy under commitment should strike down inflation and stabilize the repricing rate, countering the inflationary aspirations of firms and dampening state dependence. Along the optimal commitment path, the central bank benefits from a lower sacrifice ratio and achieves lower inflation. 

El formato será presencial y el seminario se desarrollará en la Sala P-204.

Saludos cordiales,

Dirección de Investigación