Inflation Dynamics of Financial Shocks

• Tác giả: Olli Palmén
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.41 Value of money
• Thông tin xuất bản: 2020
• Bộ sưu tập: Metadata
• ID: 164608

Tóm tắt

Comment: 15 pagesWe study the effects of financial shocks on the United States economy by using a Bayesian structural vector autoregressive (SVAR) model that exploits the non-normalities in the data. We use this method to uniquely identify the model and employ inequality constraints to single out financial shocks. The results point to the existence of two distinct financial shocks that have opposing effects on inflation, which supports the idea that financial shocks are transmitted to the real economy through both demand and supply side channels.