The price puzzle revisited: Can the cost channel explain a rise in inflation after a monetary policy shock?

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.

MoreLess

Year of publication:	2009
Authors:	Henzel, Steffen ; Hülsewig, Oliver ; Mayer, Eric
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München

Check Google Scholar |

More access options

In German libraries (KVK)

I need help

More details

Series:	Munich Reprints in Economics.
Type of publication:	Book / Working Paper
Notes:	Published in Journal of Macroeconomics 2 31(2009): pp. 268-289
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011019488