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

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
Published as: Patience in repeated bargaining: Revisiting Muthoo (1999) in Journal of Mathematical Economics , Vol. 75, 150-153, March, 2018