scholarly journals Monetary Policy and the Relative Price of Durable Goods

2017 ◽  
Author(s):  
Alessandro Cantelmo ◽  
Giovanni Melina
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Relative Price

scholarly journals Monetary Policy and the Relative Price of Durable Goods

2017 ◽  
Vol 17 (290) ◽  
pp. 1 ◽  
Author(s):  
Alessandro Cantelmo ◽  
Giovanni Melina ◽  
◽  
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Relative Price

scholarly journals Monetary policy and the relative price of durable goods

2018 ◽  
Vol 86 ◽  
pp. 1-48 ◽  
Author(s):  
Alessandro Cantelmo ◽  
Giovanni Melina
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Relative Price

scholarly journals Durable Goods, Inter-Sectoral Linkages and Monetary Policy

2008 ◽  
Author(s):  
Hafedh Bouakez ◽  
Emanuela Cardia ◽  
Francisco J. Ruge-Murcia
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Sectoral Linkages

scholarly journals Monetary Policy and Relative Price Shocks in South Africa and Other Inflation Targeters

2008 ◽  
Vol 08 (289) ◽  
pp. 1
Author(s):  
Alfredo Cuevas ◽  
Secil Topak ◽  
◽  
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
Relative Price ◽  
Price Shocks

scholarly journals Sticky-Price Models and Durable Goods

2007 ◽  
Vol 97 (3) ◽  
pp. 984-998 ◽  
Author(s):  
Robert B Barsky ◽  
Christopher L House ◽  
Miles S Kimball
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Sticky Prices ◽  
Price Rigidity ◽  
Aggregate Output ◽  
Limiting Case

The inclusion of a durable goods sector in sticky-price models has strong and unexpected implications. Even if most prices are flexible, a small durable goods sector with sticky prices may be sufficient to make aggregate output react to monetary policy as though most prices were sticky. In contrast, flexibly priced durables with sufficiently long service lives can undo the implications of standard sticky price models. In a limiting case, flexibly priced durables cause monetary policy to have no effect on aggregate output. Our analysis suggests that durable goods prices are the most relevant data for calibrating price rigidity. (JEL E21, E23, E31, E52)

Exchange Rate Pass-Through: A Case Study of a Small Open Economy

2007 ◽  
Vol 7 (3) ◽  
pp. 1850112 ◽  
Author(s):  
Olajide Oladipo
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Nominal Exchange Rate ◽  
Production Costs ◽  
Policy Implications ◽  
Relative Price ◽  
The Exchange Rate ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
Future Path

The exchange rate pass-through for Nigeria imports is estimated by applying an econometric procedure to sectoral data which avoids the pit-falls in previous studies. We use the mark-up approach, which implies setting export prices as a mark-up on production costs. So, the price facing importers is the exchange rate adjusted production costs where mark-up depends on the competitive pressures in the import's market and the nominal exchange rate. Our results indicate incomplete pass-through at varying degrees across sectors, which implies that the foreign exporters passed on only part of the increase in their costs of production to import prices. Also, it reveals that the effort of the Nigerian government in encouraging companies to use local inputs where possible instead of relying on imported intermediate inputs is gradually yielding positive results. Important policy implications that follow from our results of incomplete pass-through to domestic prices could influence CBN forecasts of future path of inflation, a key element in the conduct of monetary policy. Indeed, the successful implementation of monetary policy presupposes that CBN has not only a good understanding of inflation dynamics but is also relatively successful at predicting the future path of inflation. Also, our results imply that the exchange rate policy may be a blunt instrument when used to restore external balance since relative price adjustments will be limited. Furthermore, the incomplete pass-through suggests that exchange rate changes are likely to lead to smaller real effects on the economy through lower changes in both the terms of trade and import volumes and finally, the extent of inflation (deflation) effects of exchange rate depreciation (appreciation) operating through changes in the prices of imported goods will be moderated.

scholarly journals Optimal Monetary Policy with Durable and Non-Durable Goods

2002 ◽  
Vol 2002 (0748r) ◽  
pp. 1-31 ◽  
Author(s):  
Christopher J. Erceg ◽  
◽  
Andrew Levin
Keyword(s):  
Monetary Policy ◽  
Durable Goods ◽  
Optimal Monetary Policy
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