We investigate the relationship between monetary policy and inflation dynamics in the US using a medium scale structural model. The specification is estimated with Bayesian techniques and fits the data reasonably well. Policy shocks account for a part of the decline in inflation volatility; they have been less effective in triggering inflation responses over time and qualitatively account for the rise and fall in the level of inflation. A number of structural parameter variations contribute to these patterns. © 2011 Elsevier B.V. All rights reserved.
Canova F., Ferroni F. (2012). The dynamics of US inflation: Can monetary policy explain the changes?. JOURNAL OF ECONOMETRICS, 167(1), 47-60 [10.1016/j.jeconom.2011.08.008].
The dynamics of US inflation: Can monetary policy explain the changes?
Ferroni F.
2012
Abstract
We investigate the relationship between monetary policy and inflation dynamics in the US using a medium scale structural model. The specification is estimated with Bayesian techniques and fits the data reasonably well. Policy shocks account for a part of the decline in inflation volatility; they have been less effective in triggering inflation responses over time and qualitatively account for the rise and fall in the level of inflation. A number of structural parameter variations contribute to these patterns. © 2011 Elsevier B.V. All rights reserved.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
