SERVICES DEEPENING AND THE TRANSMISSION OF MONETARY POLICY

• 成果类型: Article
• 署名作者: Galesi, Alessandro; Rachedi, Omar
• 署名单位: Banco de Espana
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvy041
• 发表日期: 2019
• 页码: 1261-1293
• 关键词: structural vector autoregressions; GROWTH; nonneutrality; rigidities; prices; facts; MODEL

摘要

The structural transformation from manufacturing to services comes with a process of services deepening: the services share of intermediate inputs rises over time. Moreover, inflation reacts less to monetary policy shocks in countries that are more intensive in services intermediates. We rationalize these facts using a two-sector New Keynesian model where trends in sectoral productivities generate endogenous variations in the Input-Output matrix. Services deepening reduces the contemporaneous response of inflation to monetary policy shocks through a marginal cost channel. Since services prices are stickier than manufacturing prices, the rise of services intermediates raises the sluggishness of sectoral marginal costs and inflation rates.