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The Dynamics of US Inflation: Can Monetary Policy Explain the Changes?

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  • Fabio Canova
  • Filippo Ferroni

Abstract

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

Suggested Citation

  • Fabio Canova & Filippo Ferroni, "undated". "The Dynamics of US Inflation: Can Monetary Policy Explain the Changes?," Working Papers 471, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:471
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    More about this item

    Keywords

    New Keynesian model; Bayesian methods; monetary policy; Inflation dynamics;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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