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Sticky prices and monetary policy shocks *.

A large literature in macroeconomics grasps that, because of sticky prices, changes in monetary policy temporarily affect the real quantifies of serviceables and services produced. The magnitude and persistence of the issues should vary across goods in relation to their expanse of price stickiness. We proof this hypothesis using evidence upon the importance of price rigidities across categories of consumption in the United States.

We find that they do not. The short-run replications of relative prices are opposite the predicted replications Furthermore, the monetary policy collisions show ...





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