Fei Tan

Recent Papers

1. Learning from Monetary and Fiscal Policy

   Han, Zhao, Tan, Fei, and Wu, Jieran

   revision requested at Review of Economic Dynamics, 2022

   Abs Bib PDF

   We present a dynamic incomplete information model where monetary and fiscal policy instruments serve as endogenous signals for the private sector. We highlight a novel information channel of policy interactions, and show the general equilibrium (GE) information feedback between policies largely shapes the economy's response to policy shocks. We document a non-monotone signaling effect of policies with respect to the policy rule parameters. Our analysis shows the GE information feedback is quantitatively significant, and the model provides a unified explanation of the various policy impacts on inflation, the dynamics of survey expectations, and the missing inflation after the Great Recession.

   @article{HanTanWuLearning,
     title = {Learning from Monetary and Fiscal Policy},
     author = {Han, Zhao and Tan, Fei and Wu, Jieran},
     year = {2022},
     pdf = {LearnMPFP.pdf},
     bibtex_show = {true},
     selected = {true},
     status = {revision requested},
     journal = {Review of Economic Dynamics},
     topic = {Monetary and Fiscal Policy}
   }