Bayoumi, Tamim; Sgherri, Silvia - International Monetary Fund (IMF) - 2004
-side flexibility are indeed the main channel through which monetary policy lowers the volatility of inflation and, even more …This paper proposes a markedly different transmission mechanism from monetary policy to the macroeconomy, focusing on … that changes in monetary policy are linked to shifts in nominal inertia, and that these improvements in supply …