Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5061348 | Economics Letters | 2010 | 4 Pages |
Abstract
This study addresses the “price puzzle” - a positive response of prices to monetary tightening in VAR models. By using long-run instead of the usual short-run restrictions on the US data including output, prices and interest rate, we find that monetary tightening had a negative effect on prices.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dejan Krusec,