CV - Job Market Paper  
 

Chan, Jenny

Job market candidate

Contact information

Tel. +34 93 542 1657

[email protected]

 

Personal Website

 

Available for Interviews at :

European Job Market for Economists December 6-7, Naples, Italy

Simposio de la Asociación Española de Economía (SAEe), December 13-15, Madrid, (SpainEEA),

Allied Social Science Associations (ASSA), January 4-6, Atlanta, US

 

Research interests

Primary: Macroeconomics. Monetary Economics

Secondary: Information Economics. Financial Econometrics

 

Placement officer

Filippo Ippolito
[email protected]
 

References

Vladimir Asriyan (Advisor)
[email protected]

Christian Brownlees 
[email protected]

Kristoffer Nimark
[email protected]

Edouard Schaal (Advisor)
[email protected]

Research

"Monetary Policy and Sentiment Driven Fluctuations" (Job Market Paper)
I study optimal monetary policy in the presence of non-fundamental sources of fluctuations. Sentiments, or beliefs about aggregate demand, can be self-fulfilling in models departing slightly from the assumption of complete information in the benchmark New Keynesian framework. Through its effect on aggregate variables, the stance of monetary policy determines the precision of endogenous signals that firms receive, and consequently, the degree of coordination in firms’ production (pricing) decision. As a result, the distribution of non-fundamental shocks is no longer independent of policy, introducing a novel tradeoff between stabilizing output and inflation. Strong inflation targeting, the optimal policy response to fundamental shocks, increases the variance of non-fundamental fluctuations, which is shown to be suboptimal. The Taylor rule is no longer sufficient to rule out indeterminacy. Instead, a more lax response to inflation allows the policymaker to eliminate non-fundamental fluctuations and hence the output-inflation tradeoff.