Çenesiz, M. Alper; Guimarães, Luís - Faculdade de Economia, Universidade do Porto - 2013
The standard two-sector New Keynesian model with durable goods is at odds with conventional wisdom and VAR evidence: Following a monetary shock, it generates (i) either negative or no comovement across sectoral outputs, and (ii) aggregate neutrality of money when durable-goods' prices are...