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Jean-Paul L'Huillier
Person

Jean-Paul L’Huillier

Senior Research Economist
Areas of Expertise macroeconomics, information frictions, behavioral economics
Department Research
Education
  • PhD,
  • Economics,
  • Massachusetts Institute of Technology,
  • 2010

Jean-Paul L'Huillier is a senior research economist in the Research Department at the Federal Reserve Bank of Cleveland and a member of the leadership team of the Bank’s Center for Inflation Research.

Dr. L'Huillier is currently on leave from Brandeis University. Previously, he was at the Einaudi Institute for Economics and Finance (EIEF) and a visiting faculty member at Yale University. His recent research concentrates on how to enact suitable monetary policy in environments of chronic liquidity traps and on understanding medium-term macroeconomic boom–bust cycles. He has published articles in refereed journals, including the American Economic Review; the Journal of Monetary Economics; American Economic Journal: Macroeconomics; the Journal of Money, Credit and Banking; and the Journal of Economic Dynamics and Control.

Featured Publications

  • “Incorporating Diagnostic Expectations into the New Keynesian Framework.” With Sanjay R. Singh and Donghoon Yoo. The Review of Economic Studies, forthcoming.
  • “Technological Revolutions and the Three Great Slumps: A Medium-Run Analysis.” With Dan Cao. Journal of Monetary Economics, 2018 (June): 93–108.
  • “News, Noise, and Fluctuations: An Empirical Exploration.” With Olivier J. Blanchard and Guido Lorenzoni. American Economic Review, 2013 (December): 3045–3070.

    • Working Papers

      • Working Paper
        Raising the Inflation Target: How Much Extra Room Does It Really Give?
        Jean-Paul L’Huillier Raphael S. Schoenle
        06.16.2020 | WP 20-16
        Some, but less than intended. The reason is a shift in the behavior of the private sector: Prices adjust more frequently, lowering the potency of monetary policy. We quantitatively investigate this channel across different models, based on a calibration using micro data. By raising the target from 2 percent to 4 percent, the monetary authority gets only between 0.51 and 1.60 percentage points of effective extra policy room for monetary policy (not 2 percentage points as intended). Getting 2 percentage points of effective extra room requires raising the target to more than 4 percent. Taking this channel into consideration raises the optimal inflation target by roughly 1 percentage points relative to earlier computations.

    • Economic Commentaries

    • “Incorporating Diagnostic Expectations into the New Keynesian Framework.” With Sanjay R. Singh and Donghoon Yoo. The Review of Economic Studies, forthcoming.
    • “Optimally Sticky Prices: Foundations.” With William R. Zame. Journal of Economic Dynamics and Control (Special Issue on Markets and Economies with Information Frictions), conditionally accepted.
    • “Consumer Imperfect Information and Endogenous Price Rigidity.” American Economic Journal: Macroeconomics, 2020 (April): 94–123.
    • “Macro-Prudential Taxation in Good Times.” With Jean Flemming and Facundo Piguillem. Journal of International Economics, 2019 (November): 103251.
    • “Where is the GE? Consumption Dynamics in DSGEs.” With Donghoon Yoo. Journal of Money, Credit, and Banking, 2019 (September): 1491–1502.
    • “Technological Revolutions and the Three Great Slumps: A Medium-Run Analysis.” With Dan Cao. Journal of Monetary Economics, 2018 (June): 93–108.
    • “Short-Run Effects of Lower Productivity Growth. A Twist on the Secular Stagnation Hypothesis.” With Olivier J. Blanchard and Guido Lorenzoni. Journal of Policy Modeling, 2017 (July): 639–649.
    • “Bad News in the Great Depression, the Great Recession, and Other US Recessions: A Comparative Study.” With Donghoon Yoo. Journal of Economic Dynamics and Control, 2017 (August): 79–98.
    • “Public and Private Values.” With Dan Ariely and Anat Bracha. Journal of Behavioral Decision Making, 2016: 550–555.
    • “News, Noise, and Fluctuations: An Empirical Exploration.” With Olivier J. Blanchard and Guido Lorenzoni. American Economic Review, 2013 (December): 3045–3070.
    • “Did the US Consumer Overreact? A Test of Rational Expectations.” Economics Letters, 2012 (August): 207–209.
    • “Monetary Policy and the Global Housing Bubble.” With Jane Dokko, Brian M. Doyle, Michael T. Kiley, and Jinill Kim. Economic Policy, 2011 (April): 237–287.
    • “Herding by Attribution of Privileged Information.” With Alain Quiamzade. Journal of Behavioral Decision Making, 2009 (January): 1–19.
    • “Raising the Inflation Target: Assessing the Extra Room.” With Raphael Schoenle. VoxEU, 2020 (July).
    • “I Will Put My Law in Their Minds: Social Control and Cheating Behavior among Catholics and Protestants.” With Alain Quiamzade, Nicolas Sommet, Javiera Burgos Laborde, and Luigi Guiso. Journal for the Scientific Study of Religion, 2017 (March): 365–382.
    • “Differences in Measures of the Fiscal Multiplier and the Reduced-Form Vector Autoregression.” With Michael Donadelli, Adriana Grasso, and Valentina Milano. Applied Economics Letters, 2016: 1215–1218.