Skip to Main content Skip to Navigation
Journal articles

The 'Price Puzzle', once more

Abstract : The VAR monetary literature has long exhibited a ‘price puzzle’: after a positive innovation on the policy interest rate, the price level tends to increase rather than to decrease. This paper shows that introducing fiscal data (primary surplus and net debt) proves fruitful in a VAR model also featuring the output gap, the inflation rate and the nominal short-term interest rate: the ‘price puzzle’ vanishes.
Document type :
Journal articles
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03416028
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Friday, November 5, 2021 - 8:51:08 AM
Last modification on : Tuesday, January 25, 2022 - 3:18:03 PM

Identifiers

  • HAL Id : hal-03416028, version 1
  • SCIENCESPO : 2441/3243

Collections

Citation

Jérôme Creel. The 'Price Puzzle', once more. Applied Economics, Taylor & Francis (Routledge), 2006, pp.183 - 187. ⟨hal-03416028⟩

Share

Metrics

Record views

4