This paper presents a monetary policy game where firms' and wage setters' choices are derived explcitly from microfoundations. This approach allows us to relate some important features of the policy game to identifiable technological and preference parameters. Moreover, it shows that with large...

This paper collects new evidence on the monetary transmission mechanism. This evidence is obtained from the study of the effects that unexpected monetary policy shocks exert on the activity of the manufacturing sectors in 5 OECD countries (France, Germany, Italy, UK and USA). The goal is...