The energy transition requires substantial amounts of metals, including copper, nickel, cobalt, and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks with an ``anchor'' variable, estimate supply elasticities, and pin down the price impact of the energy...

An exogenous oil price shock raises inflation and contracts output, similar to a negative productivity shock. In the standard New Keynesian model, however, this does not generate a tradeoff between inflation and output gap volatility: under a strict inflation targeting policy, the output decline...