• Industrial Policies Cascade in Production Networks with Kaiji Chen

• The Network Origins of Inflation Stances in a Currency Union [Slides]

Insight: This paper shows that a country's position in the union's supply chain endogenously determines its preferred inflation rate — the more upstream, the more hawkish — so that with a single instrument, a common monetary policy has unequal welfare incidence across member states.

• Optimal Monetary Policy in Production Networks with Distortions  [Replication] with Changhua Yu

Journal of Economic Theory (2025) 

Insight: Double marginalization in a distorted production network leaves intermediate inputs under-used. A monetary expansion partially corrects this distortion: under nominal rigidities, goods become cheaper relative to primary inputs, inducing firms to substitute toward intermediates. The resulting reallocation raises aggregate TFP. This supply-side effect accounts for about half of optimal policy's incentive to overheat the economy.