The "price puzzle" in the monetary transmission VARs with long-run restrictions

This study addresses the "price puzzle" -- a positive response of prices to monetary tightening in VAR models. By using long-run instead of the usual short-run restrictions on the US data including output, prices and interest rate, we find that monetary tightening had a negative effect on prices.

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Year of publication:	2010
Authors:	Krusec, Dejan
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 106.2010, 3, p. 147-150
Publisher:	Elsevier
Keywords:	Long-run restrictions "Price puzzle" Monetary transmission VAR Cointegration

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008551317