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
    72 Citations

    References

    SHOWING 1-7 OF 7 REFERENCES
    Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?
    • 694
    • Highly Influential
    • PDF
    Returns to Scale in U.S. Production: Estimates and Implications
    • 1,009
    • PDF
    Some evidence on the importance of sticky prices
    • Working Paper 9069. National Bureau of Economic Research.
    • 2002
    Some evidence on the importance of sticky prices. Working Paper 9069
    • National Bureau of Economic Research
    • 2002