---
title: The Power of Persistence How Demand Shocks and Monetary Policy Shape Macroeconomic Outcomes
url: https://www.ml-quant.com/papers/repec/bon-boncrc-crctr224-2025-785/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-30
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:bon:boncrc:crctr224_2025_785
source_url: https://econpapers.repec.org/RePEc:bon:boncrc:crctr224_2025_785
featured: 2026-10-30
citations: unknown
topic: Macro-Finance & Rates
---


# The Power of Persistence How Demand Shocks and Monetary Policy Shape Macroeconomic Outcomes

The study shows that in New Keynesian models, more persistent demand shocks do not always boost output more; monetary policy stance determines whether permanent income or real interest rate effects dominate.

- Source: https://econpapers.repec.org/RePEc:bon:boncrc:crctr224_2025_785
- Identifier: RePEc:bon:boncrc:crctr224_2025_785
- Released: 2026-10-19
- First featured: Quant Letter No. 137 (2026-10-30): https://www.ml-quant.com/issues/2026-10-30/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: FABRICE COLLARD, PATRICK FÈVE, PHILIPP WANGNER

## Related

- [Empirical Analysis of the Impact of Legal Tender Digital Currency on Monetary Policy -Based on China's Data](https://www.ml-quant.com/papers/arxiv/2310.07326/): The paper suggests that China should develop a more effective monetary policy while promoting Central bank digital currencies, examining their impact on China's monetary policy and money supply multiplier.
- [Agree to Disagree: Measuring Hidden Dissents in FOMC Meetings](https://www.ml-quant.com/papers/arxiv/2308.10131/): A deep learning model study reveals that disagreement among FOMC members is primarily driven by current or forecasted macroeconomic data, and intensifies with more aggressive monetary policy action.
- [Inflation—Who Cares? Monetary Policy in Times of Low Attention](https://www.ml-quant.com/papers/arxiv/2105.05297/): Who Cares?: The decrease in public attention to inflation after the Great Inflation period in the U.S. complicates managing inflation expectations and can lead to inflation-attention traps, suggesting a need to increase the inflation target.
- [Post-COVID inflation and the monetary policy dilemma: an agent-based scenario analysis](https://www.ml-quant.com/papers/arxiv/2306.01284/): A new modelling approach using the Mark-0 Agent-Based Model explores the impact of regulatory policies on inflationary dynamics resulting from COVID-19-related shocks.
- [Jawboning the Fed: Do Markets Listen When Administrations Talk?](https://www.ml-quant.com/papers/arxiv/2610.32300/): Analysis of four decades of news finds dovish political pressure lowers near-term rate expectations by roughly one basis point per event, while hawkish pressure shows no effect.
- [US monetary policy spillovers through global commercial real estate](https://www.ml-quant.com/papers/repec/dnb-dnbwpp-872/): Research reveals that US quantitative easing raises global commercial real estate prices and credit, with spillback effects amplified through trade linkages and cross-border investor ownership.