Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224557
Authors: 
Balleer, Almut
Zorn, Peter
Year of Publication: 
2020
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics
Abstract: 
We estimate the effects of monetary policy on price-setting behavior in administrative micro data underlying the German producer price index. After expansionary monetary policy, the increase in the frequency of price change is economically small, the average absolute size across all price changes falls, and the aggregate price level hardly adjusts as a result. These estimates imply a strong degree of monetary non-neutrality because they rule out quantitative structural models that generate small and transient effects of monetary policy through selection on large price adjustments.
Subjects: 
price setting
extensive margin
intensive margin
monetary policy
local projections
menu cost
JEL: 
E30
E31
E32
E52
Document Type: 
Conference Paper

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