|Mayer, Eric; Hülsewig, Oliver; Henzel, Steffen; Wollmershäuser, Timo (2006): The Price Puzzle Revisited: Can the Cost Channel explain a Rise in Inflation after a Monetary Shock? Würzburg economic papers, 74|
This paper explores whether the cost channel solves the price puzzle. We set-up a New Keynesian DSGE model and estimate it for the euro area by adopting a minimum distance approach. Our findings suggest that - under certain parameter restrictions which are not rejected by the data - the cost channel helps to generate an initial rise of inflation after a monetary contraction.
|Item Type:||Paper (Discussion Paper)|
Economics > Chairs > Chair in Public Finance
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:49|
|Last Modified:||29. Apr 2016 09:16|