Managing an energy shock: fiscal and monetary policy

Abstract

Prepared for the Proceedings of the XXV Annual Conference of the Central Bank of Chile, held in November 2022. We are grateful for helpful comments and suggestions from Jenny Chan, Sebastián Edwards, Jordi Galí, Peter Ganong, Pierre-Olivier Gourinchas, Jonathan Heathcote, Oleg Itskhoki, Enisse Kharroubi, Robert Kollmann, Moritz Lenel, Ben Moll, Dmitry Mukhin, Iván Werning, as well as from seminar participants at the 2023 AEA Meetings, Bank of Canada, Bank of England, Central Bank of Chile, Chicago Fed, EABCN Monetary Policy conference, Hamburg, Hoover, IMF, National Bank of Belgium, San Francisco Fed, Sciences Po, 2023 SED Conference, Yale, and the University of Pennsylvania. This research is supported by the National Science Foundation grant awards SES-1851717 and SES2042691 as well as the Domenic and Molly Ferrante Award.