The Price Puzzle in the Monetary Transmission Vars with Long-Run Restrictions
Economics Letters, 2010, 106, 3, 147-150
KRUSEC, Dejan, The Price Puzzle in the Monetary Transmission Vars with Long-Run Restrictions, Economics Letters, 2010, 106, 3, 147-150 - http://hdl.handle.net/1814/16529
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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. (c) 2009 Elsevier B.V. All rights reserved.
Cadmus permanent link: http://hdl.handle.net/1814/16529
Full-text via DOI: 10.1016/j.econlet.2009.04.027
Publisher: Elsevier Science Sa
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