The dynamics of US inflation: Can monetary policy explain the changes?
Fabio Canova () and
Filippo Ferroni ()
Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
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.
Keywords: New Keynesian model; Bayesian methods; Monetary policy; Inflation dynamics. (search for similar items in EconPapers)
JEL-codes: E52 E47 C53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Journal Article: The dynamics of US inflation: Can monetary policy explain the changes? (2012)
Working Paper: The Dynamics of US Inflation: Can Monetary Policy Explain the Changes?
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1241
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