| Tekijä: | Adão, B. Correia, I. Teles, P. |
| Otsikko: | The monetary transmission mechanism: is it relevant for policy? |
| Lehti: | Journal of the European Economic Association
2004 : APR-MAY, VOL. 2:2-3, p. 310-319 |
| Asiasana: | flexibility monetary policy |
| Vapaa asiasana: | monetary transmission |
| Kieli: | eng |
| Tiivistelmä: | Environments with sticky prices, wages or portfolios where it is feasible and optimal to use monetary policy are studied to replicate the allocation under full flexibility. In these environments the optimal policy does not depend on the scope of the frictions. In this sense, the strength of the monetary transmission mechanism is irrelevant for the conduct of monetary policy. So, asymmetries in the strength of the transmission mechanisms do not impose a cost on a common policy. |
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