an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …

This paper reviews recent research that grapples with the question: What happens after an exogenous shock to monetary … exogenous shock to monetary policy. Nevertheless, there is considerable agreement about the qualitative effects of a monetary … policy shock in the sense that inference is robust across a large subset of the identification schemes that have been …

This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending … sectors can be summarized as follows. First, following a contractionary shock to monetary policy, net funds raised by the … business sector increases for roughly a year. Thereafter, as the recession induced by the policy shock gains momentum, net …

rates. The temporal pattern of the depreciation in U.S. nominal exchange rates following a positive monetary policy shock is …

the following facts. In response to a contractionary monetary policy shock, the aggregate price level responds very little … failing of the sticky price model is that it implies profits rise after a contractionary monetary policy shock. This finding …, such as wage contracts, which dampen movements in the marginal cost of production after a monetary policy shock …

employment to a money supply shock. However, a key shortcoming of these models is that they cannot rationalize persistent …

response to such a shock, employment, output, and nonresidential investment rise, while real wages, residential investment, and …