The short‐run increase in prices following an unexpected tightening of monetary policy
constitutes a puzzle frequently reported in empirical studies. Yet the puzzle is easy to …

Although optimal monetary policy stabilizes food inflation theoretically, empirical studies
remain limited not only in the context of volumes and the estimation approaches, but are …

Combining industry-level data on output and prices with novel monetary policy shock
estimates for 102 countries, we analyze how the effects of monetary policy vary with industry …

This paper addresses a long-standing political debate as how effective is monetary policy to
stabilise food inflation. While a wealth of theoretical literature suggests a stabilising role of …

This paper develops a partial equilibrium model of a banking firm to analyze how
provisioning rules influence loan market fluctuations. We show that a backward-looking …

This paper studies the extent to which alternative loan loss provisioning regimes affect the
procyclicality of the financial system and financial volatility. It uses a DSGE model with …

In light of the literature on the 'price puzzle', this paper shows that a positive effect of a
tightening of monetary policy on the level of prices should be considered a normal …

This paper highlights how the presence of a monetary policy cost channel can offer new
insights into the relation between monetary policy and inflation when the Phillips curve is …

In structural VARs, unexpected monetary tightening often leads to the price puzzle, a
counterintuitive increase in inflation in the impulse response function. The identification of …

The policy debate in Turkey over the impact of interest rate on inflation concerns the
question of what policymakers should do when faced with volatile and high inflation …