The cost channel reconsidered: a comment using an identification-robust approach
Journal of Money, Credit and Banking
Estados Unidos da América
Web of Science®
We reexamine the empirical relevance of the cost channel of monetary policy (e.g., Ravenna and Walsh 2006), employing recently developed moment-conditions inference methods, including identification-robust procedures. Using U.S. data, our results suggest that the cost channel effect is poorly identified and we are thus unable to corroborate the previous results in the literature.
Cost channel; Generalized empirical likelihood; GMM; Phillips curve; Weak identification
Classificação Fields of Science and Technology
- Economia e Gestão - Ciências Sociais