In a VAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or mildly positive. It significantly falls only if narrowly defined as the ratio between new house and nondurables prices. These findings survive three identification strategies and...

Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features virtually no response to...

The authors analyze the Russian monetary policy in 2004-2012. They present a model that describes short run nonlinear monetary dynamics inducing the balance of payments and policy shocks. Central Bank's international reserves are considered as the key factor of monetary and exchange rate...