• DOI:10.21034/QR.2711
Corpus ID: 7174321

Sticky Prices and Monetary Policy Shocks

@article{Bils2003StickyPA,
  title={Sticky Prices and Monetary Policy Shocks},
  author={Mark Bils and P. Klenow and Oleksiy Kryvtsov},
  journal={The Quarterly review},
  year={2003},
  volume={27},
  pages={2-9}
}

Mark Bils, P. Klenow, Oleksiy Kryvtsov

Published 2003

Economics

The Quarterly review

Models with sticky prices predict that monetary policy changes will affect relative prices and relative quantities in the short run because some prices are more flexible than others. In U.S. micro data, the degree of price stickiness differs dramatically across consumption categories. This study exploits that diversity to ask whether popular measures of monetary shocks (for example, innovations in the federal funds rate) have the predicted effects. The study finds that they do not. Short-run… CONTINUE READING

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