• 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: In a distorted production network economy where double marginalization leaves intermediate inputs inefficiently under-used, incomplete wage pass-through into sticky input prices means a monetary expansion pushes firms to substitute from labor toward intermediates, raising aggregate TFP — a supply-side effect that accounts for about half of optimal policy's incentive to overheat the economy.