%0 Journal Article %1 Balke200719 %A Balke, Nathan S. %A Wynne, Mark A. %D 2007 %J Journal of Macroeconomics %K monetary_transmission ppi relative_prices sectoral_data var %N 1 %P 19 - 36 %R 10.1016/j.jmacro.2005.04.002 %T The relative price effects of monetary shocks %U http://www.sciencedirect.com/science/article/pii/S0164070406000760 %V 29 %X We document the response of the individual components of the Producer Price Index (PPI) to commonly used measures of monetary shocks, and show that these responses are at variance with many widely used models of monetary nonneutrality. Monetary shocks are shown to have large relative price effects, resulting in an increase in the dispersion of the cross-section distribution of prices. Furthermore, in response to a contractionary (expansionary) monetary shock, a substantial number of prices tend to rise (fall). Most existing models of monetary nonneutrality are incapable of replicating these types of relative price responses.

@article{Balke200719, abstract = {We document the response of the individual components of the Producer Price Index (PPI) to commonly used measures of monetary shocks, and show that these responses are at variance with many widely used models of monetary nonneutrality. Monetary shocks are shown to have large relative price effects, resulting in an increase in the dispersion of the cross-section distribution of prices. Furthermore, in response to a contractionary (expansionary) monetary shock, a substantial number of prices tend to rise (fall). Most existing models of monetary nonneutrality are incapable of replicating these types of relative price responses. }, added-at = {2013-05-09T01:35:54.000+0200}, author = {Balke, Nathan S. and Wynne, Mark A.}, biburl = {https://www.bibsonomy.org/bibtex/299e2421c6e3875bf4f7d9e0bd1842a72/jp}, description = {ScienceDirect.com - Journal of Macroeconomics - The relative price effects of monetary shocks}, doi = {10.1016/j.jmacro.2005.04.002}, interhash = {e50e3488bcdfb6e15e5b2e8cba0a8e27}, intrahash = {99e2421c6e3875bf4f7d9e0bd1842a72}, issn = {0164-0704}, journal = {Journal of Macroeconomics }, keywords = {monetary_transmission ppi relative_prices sectoral_data var}, number = 1, pages = {19 - 36}, timestamp = {2013-05-09T01:35:54.000+0200}, title = {The relative price effects of monetary shocks }, url = {http://www.sciencedirect.com/science/article/pii/S0164070406000760}, volume = 29, year = 2007 }