functions because the latter require shock identification, which is inherently a difficult process …

This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending … generate sharp, persistent declines in commodity prices and (iv) the GDP price deflator does not respond to them for roughly a … sectors can be summarized as follows. First, following a contractionary shock to monetary policy, net funds raised by the …

external instruments produce responses in output and inflation consistent with both textbook theory and conventional monetary …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after … an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …

. We take this proposition to the data using standard structural VARs with government spending and aggregate output …, confidence is irrelevant for the transmission of government spending shocks to output, but during periods of economic slack it is …

, other asset prices such as long-term interest rates, equity prices, and the exchange rate, and the consequent effects on … (FAVAR) and a DSGE model. Both approaches yield similar results: Monetary policy innovations have a more muted effect on real …

document the subsequent effect on output. Using turning points defined by the Harding-Pagan algorithm, we identify and compare … the timing, duration, amplitude and co- movement of cycles in money, credit and output. Regressions show that financial …

We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The … output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts … are significantly more important. We dub this difference the output composition puzzle and explore its implications and …

effect on output but a persistent negative impact on prices. In contrast to alternative identification approaches, we do not … use differences between nowcasts of the output gap and inflation with final, revised estimates of these series to isolate … movements in the policy rate unrelated to economic conditions. We then compute the effects of a monetary policy shock on the …