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Small and Large Price Changes and the Propagation of Monetary Shocks

Alvarez, Fernando - 2014

We document the presence of both small and large price changes in individual price records from the CPI in France and the US. After correcting for measurement error and cross-section heterogeneity, the size-distribution of price changes has a positive excess kurtosis. We propose an analytical...

Persistent link: https://www.econbiz.de/10013053475

Measuring Monetary Policy

Bernanke, Ben; Mihov, Ilian - 2021

Extending the approach of Bernanke and Blinder (1992), Strongin (1992), and Christiano, Eichenbaum, and Evans (1994a, 1994b), we develop and apply a VAR-based methodology for measuring the stance of monetary policy. More specifically, we develop a 'semi-structural' VAR approach, which extracts...

Persistent link: https://www.econbiz.de/10013218416

Endogenous Money or Sticky Prices?

Ireland, Peter N. - 2021

What explains the correlations between nominal and real variables in the postwar US data? Are these correlations indicative of significant nominal price rigidity? Or do they simply reflect the particular way that monetary policymakers react to developments in the real economy? To answer these...

Persistent link: https://www.econbiz.de/10013244878

The Timing of Monetary and Price Changes and the International Transmission of Inflation

Cassese, Antonio; Lothian, James R. - 2021

This paper presents a theoretical and empirical investigation into timing relationships between variables within and across industrialized countries. In the analysis we highlight the two polar cases of completely closed and open economies and draw some implications for timing between monetary...

Persistent link: https://www.econbiz.de/10013220970

Generating Real Persistent Effects of Monetary Shocks : How Much Nominal Rigidity Do We Really Need?

Jeanne, Olivier - 2021

This paper attempts to assess whether money can generate persistent economic" fluctuations in dynamic general equilibrium models of the business cycle. We show that a small" nominal friction in the goods market can make the response of output to monetary shocks large" and persistent if it is...

Persistent link: https://www.econbiz.de/10013248244

Analysis of the Monetary Transmission Mechanism : Methodological Issues

McCallum, Bennett T. - 2021

functions because the latter require shock identification, which is inherently a difficult process …

Persistent link: https://www.econbiz.de/10013212576

Temporary Price Changes and the Real Effects of Monetary Policy

Kehoe, Patrick J. - 2008

policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …

Persistent link: https://www.econbiz.de/10012769878

The Transmission of Domestic Shocks in the Open Economy

Erceg, Christopher J. - 2010

This paper uses an open economy DSGE model to explore how trade openness affects the transmission of domestic shocks. For some calibrations, closed and open economies appear dramatically different, reminiscent of the implications of Mundell-Fleming style models. However, we argue such stark...

Persistent link: https://www.econbiz.de/10012759680

The Effects of Monetary Policy Shocks : Some Evidence from the Flow of Funds

Christiano, Lawrence J.; Eichenbaum, Martin S.; Evans, … - 2022

This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending … sectors can be summarized as follows. First, following a contractionary shock to monetary policy, net funds raised by the … business sector increases for roughly a year. Thereafter, as the recession induced by the policy shock gains momentum, net …

Persistent link: https://www.econbiz.de/10013322315

Monetary Policy Uncertainty and Economic Fluctuations

Creal, Drew - 2014

react in opposite directions to a shock to the real economy, and the response of inflation to uncertainty shocks vary across …

Persistent link: https://www.econbiz.de/10013045286