Speaker: Juan Herreño
Affiliation: University of California, San Diego
Date and time: Wednesday, March 12, 2025 16:30 (Santiago, GMT-03:00)
Location: Sala Constitucion at the Central Bank of Chile, Morandé 115, second floor.
Registration: seminarios@bcentral.cl

Abstract: We estimate the direct and indirect effects of demand expansions on inflation in India. Firms face supply and demand distortions that shape their prices, markups, and scale decisions. Using disaggregated data for manufacturing firms and a variety of research designs across firms, industries, and regions, we provide a portable method for the estimation of the slope of the Phillips curve, and the magnitude of the reallocative effects of monetary expansions which are driven by the distribution of demand and supply distortions. The slope of the Phillips curve in India is one order of magnitude steeper than in the United States.