Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/17764
Authors: 
Pierdzioch, Christian
Yener, Serkan
Year of Publication: 
2004
Series/Report no.: 
Kieler Arbeitspapiere 1214
Abstract: 
Results of empirical research have revealed a characteristic hump-shaped effect of monetary policy shocks on output: the effect builds to a peak after several months and then gradually dies out. We analyze, in the context of a "new open economy macroeconomics" model, factors that imply a hump- shaped effect of a monetary policy shock on output. We find that a hump- shaped effect of output is likely to result if the model features a "catching up with the Joneses" effect, pricing-to-market behavior of firms, and imperfect international financial market integration.
Subjects: 
Monetary policy
Catching up with the Joneses
Pricing-to-market
International financial markets
JEL: 
F31
F32
F41
Document Type: 
Working Paper

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