Findings from Central Bank Corporation Broaden Understanding of Economics and Statistics (The Origins of Monetary Policy Disagreement: the Role of Supply and Demand Shocks): Economics – Economics and Statistics

2026 MAR 19 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Economics - Economics and Statistics is the subject of a report. According to news reporting from Santiago, Chile, by NewsRx journalists, research stated, “We investigate how dissent in the Federal Open Market Committee (FOMC) is affected by structural macroeconomic shocks obtained using a medium-scale dynamic stochastic general equilibrium model.”

Financial support for this research came from Fundacao para a Ciencia e a Tecnologia (FCT).

The news correspondents obtained a quote from the research from Central Bank Corporation, “We find that dissent is less (more) frequent when demand (supply) shocks are the predominant source of inflation fluctuations. In addition, supply shocks are found to raise private sector forecasting uncertainty about the path of interest rates.”

According to the news reporters, the research concluded: “Since supply shocks impose a tradeoff between inflation and output stabilization while demand shocks do not, our findings are consistent with heterogeneous preferences over the dual mandate among FOMC members as a driver of policy disagreement.”

This research has been peer-reviewed.

For more information on this research see: The Origins of Monetary Policy Disagreement: the Role of Supply and Demand Shocks. Review of Economics and Statistics, 2026;108(2):355-371. Review of Economics and Statistics can be contacted at: Mit Press, One Rogers St, Cambridge, MA 02142-1209, USA.

Our news journalists report that additional information may be obtained by contacting Carlos Madeira, Central Bank Corporation, Santiago, Chile. Additional authors for this research include Joao Madeira and Paulo Santos Monteiro.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1162/rest_a_01383. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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