Monetary Policy and the Relative Price of Durable Goods

Arbeitspapier

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 across subsamples. Then, they are rationalized via the estimation of a two-sector New-Keynesian model. Here, the degree of overall durables price stickiness is not dramatically lower than that of nondurables. Such macroeconometric results are close to recent microeconometric evidence. Moreover, they suggest that monetary policy is not very distortive of sectoral allocations.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5328

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Monetary Policy ; Business Fluctuations; Cycles
• Thema: monetary policy ; durables ; nondurables ; comovement ; relative price ; DSGE ; Bayesian estimation ; SVAR ; sign restrictions ; narrative approach

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cantelmo, Alessandro ; Melina, Giovanni
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/110829
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ