Bachmann, Ruediger; Born, Benjamin; Elstner, Steffen; … - 2013
Does time-varying business volatility affect the price setting of firms and thus the transmission of monetary policy … price change to increase from 31.6% to 32.3%. Second, the effects of this increase in volatility on monetary policy are also … small; the initial effect of a 25 basis point monetary policy shock to output declines from 0.347% to 0.341%. …