Read The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area

The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area

Pau Rabanal

4.9/5 (32068 ratings)

Description:This paper estimates the importance of the cost channel of monetary policy in a New Keynesian model of the business cycle. A model with nominal rigidities is extended by assuming that a fraction of firms need to borrow money to pay their wage bill. Hence, monetary policy tightenings increase effective unit labor costs of production, and might imply an increase in inflation. The model explains the joint dynamics of output, inflation, real wages, and interest rates, and is estimated using a Bayesian framework and data for the United States and the euro area. The main result is that cost channel effects are absent in both cases. Moreover, it is not possible to obtain a "price puzzle" type of behavior from estimated impulse responses to monetary policy shocks.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area. To get started finding The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

Pages: 72

Format: PDF, EPUB & Kindle Edition

Publisher: Not Avail

Release: 2003

ISBN: 6613802867

Description: This paper estimates the importance of the cost channel of monetary policy in a New Keynesian model of the business cycle. A model with nominal rigidities is extended by assuming that a fraction of firms need to borrow money to pay their wage bill. Hence, monetary policy tightenings increase effective unit labor costs of production, and might imply an increase in inflation. The model explains the joint dynamics of output, inflation, real wages, and interest rates, and is estimated using a Bayesian framework and data for the United States and the euro area. The main result is that cost channel effects are absent in both cases. Moreover, it is not possible to obtain a "price puzzle" type of behavior from estimated impulse responses to monetary policy shocks.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area. To get started finding The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

Special Offer | $0.00

Special Offer! | $0.00

The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area

The Cost Channel of Monetary Policy: Further Evidence for the United States and the Euro Area

More Books

Nominal versus real wage rigidities: A Bayesian approach / Pau Rabanal and Juan F. Rubio-Ramirez (Working paper series / Federal Reserve Bank of Atlanta)

Nominal versus real wage rigidities: A Bayesian approach / Pau Rabanal and Juan F. Rubio-Ramirez (Working paper series / Federal Reserve Bank of Atlanta)

Forecasting U.S. Investment

Forecasting U.S. Investment

An Estimated Dsge Model to Analyze Housing Market Policies in Hong Kong Sar

An Estimated Dsge Model to Analyze Housing Market Policies in Hong Kong Sar

How to Deal with Real Estate Booms: Lessons from Country Experiences

How to Deal with Real Estate Booms: Lessons from Country Experiences

Inflation Targeting in the Context of IMF-Supported Adjustment Programs

Inflation Targeting in the Context of IMF-Supported Adjustment Programs

Prudential Issues in Less Diversified Economies

Prudential Issues in Less Diversified Economies

Monetary Policy Rules and the U.S. Business Cycle: Evidence and Implications

Monetary Policy Rules and the U.S. Business Cycle: Evidence and Implications

Financial Factors: Implications for Output Gaps

Financial Factors: Implications for Output Gaps