E58 - Central Banks and Their Policies

• Beyond "Looking Through": Monetary Policy Responses and Communication Under Supply-Driven Inflation

  Staff working paper 2026-39 Olena Kostyshyna, Luba Petersen, Jing Yang

  Using a controlled macroeconomic experiment, we compare monetary policy rules that differ in how much they look through inflation: a Lean-Against policy with strong response to inflation and a Look-Through policy with less strong response. We combine each rule with communication protocols that vary the information the central bank releases about its policy response.

  Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, D, D8, D84, E, E5, E52, E58 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation