On 28th November OxTalks will move to the new Halo platform and will become 'Oxford Events' (full details are available on the Staff Gateway).
There will be an OxTalks freeze beginning on Friday 14th November. This means you will need to publish any of your known events to OxTalks by then as there will be no facility to publish or edit events in that fortnight. During the freeze, all events will be migrated to the new Oxford Events site. It will still be possible to view events on OxTalks during this time.
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We develop an Environmental New-Keynesian model to study the macroeconomic impact of climate policy shocks and which inflation measure is best to target in response to them. We find that the magnitude of adjustments to climate policy shocks and the most appropriate monetary policy response depend on the elasticity of substitution across production inputs and consumption goods. We show that, from a welfare perspective, in the presence of imperfect complementarity and substitutability in consumption and production, targeting headline inflation performs as well as targeting core inflation. Finally, we show that a sudden carbon tax increase transmits as an adverse supply shock, while a transition involving a gradual rise in carbon prices doesn’t necessarily result in higher prices, but does entail significant real adjustments.
