Econometrics Seminar - Juan Rubio Ramirez
Monetary policy also has short-run effects
Prof. Carvalho has picked up on Milton Friedman’s famous dictum concerning ‘long and variable lags’, that monetary actions affect economic conditions only after a lag that is both long and variable, for example with a rise in interest rates.
However, in the new research Carvalho and Professor Corsetti who was previously in the Faculty, plus co-authors Gergely Buda, Joao Duarte, Stephen Hansen, Afonso Moura, Alvaro Ortiz, Tomasa Rodrigo, José Rodríguez Mora and Guilherme Silva debate that monetary policy’s identified long lags do not rule out it also having short-run effects.
On the Black-White Gaps in Labor Supply and Earnings over the Lifecycle in the US
In the US economy, Black men, on average, receive lower wages than White men, and the difference increases over the working life. The employment rate and the number of hours worked are also lower for Blacks, but the gap is nearly constant. Together these facts suggest that on-the-job human capital accumulation might explain the diverging wages. However, the wage gap and its evolution over the lifecycle cannot be explained by differences in accumulated experience or educational attainment for the cohort we analyze.