Paper #1241

Título:

The dynamics of US inflation: Can monetary policy explain the changes?

Autores:

Fabio Canova y Filippo Ferroni

Fecha:

Junio 2010

Resumen:

We investigate the relationship between monetary policy and inflation dynamics in the US using a medium scale structural model. The specification is estimated with Bayesian techniques and fits the data reasonably well. Policy shocks account for a part of the decline in inflation volatility; they have been less effective in triggering inflation responses over time and qualitatively account for the rise and fall in the level of inflation. A number of structural parameter variations contribute to these patterns.

Palabras clave:

New Keynesian model, Bayesian methods, Monetary policy, Inflation dynamics.

Códigos JEL:

E52, E47, C53.

Área de investigación:

Macroeconomía y Economía Internacional

Publicado en:

Journal of Econometrics, 167 (1), 47-60, 2011

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