Economics, Econometrics and Finance
4 years ago

Monetary policy doesn't impact inflation in the US and Euro Area.

RePEc: Research Papers in Economics
The Cost Channel of Monetary Policy; Further Evidence for the United States and the Euro Area
Pau Rabanal

Paper Summary

The study looked at how changes in interest rates affect businesses in the US and Europe. They found that when interest rates go up, it doesn't always lead to higher prices or inflation. This goes against what some people thought would happen.

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