An Analysis of the Relationship between Monetary Shocks and Inflation Rate of CPI Components for Testing Price Stickiness

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

Seighalani Shahbod; RAHMANI TEIMOUR

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: THE JOURNAL OF PLANNING AND BUDGETING Year:2018 | Volume:23 | Issue:3 Page(s): 3-22

Download Full-Text

Persian Verion

View:

364

Download:

Cites:

Information Journal Paper

Title

An Analysis of the Relationship between Monetary Shocks and Inflation Rate of CPI Components for Testing Price Stickiness

Author(s)

Seighalani Shahbod | RAHMANI TEIMOUR | Issue Writer Certificate

Keywords

Monetary ShockQ1

Price StickinessQ1

Consumer Price IndexQ2

Vector AutoregressiveQ2

Error Correction ModelQ2

Abstract

In order to implement inflation targeting policy, it is crucial for monetary policy makers to know how prices (CPI's components) respond to monetary policy shocks. In fact, due to market imperfections and Price Stickiness, Monetary Shocks could bring about real effects. In this paper, we use VAR framework and prices stickiness test to examine the impulse response functions of CPI's components to one standard error in liquidity (M2) by using seasonal data over the time period 1369-1390 (1990-2011). Our empirical findings show that 1) Monetary Shocks have a lagged effect on disaggregated prices and most prices respond to a Monetary Shock with a considerable delay, and 2) There is a substantial difference among CPI's components response to monetary base shocks. Therefore, our findings imply the existence of Price Stickiness, but the intensity of stickiness in CPI's components is different. On the other hand, the difference in the market structure of production of goods and services can explain the difference in their price responses to Monetary Shocks.

Cites

No record.

References

No record.

Cite

APA: Copy

Seighalani, Shahbod, & RAHMANI, TEIMOUR. (2018). An Analysis of the Relationship between Monetary Shocks and Inflation Rate of CPI Components for Testing Price Stickiness. THE JOURNAL OF PLANNING AND BUDGETING, 23(3 ), 3-22. SID. https://sid.ir/paper/388554/en

Vancouver: Copy

Seighalani Shahbod, RAHMANI TEIMOUR. An Analysis of the Relationship between Monetary Shocks and Inflation Rate of CPI Components for Testing Price Stickiness. THE JOURNAL OF PLANNING AND BUDGETING[Internet]. 2018;23(3 ):3-22. Available from: https://sid.ir/paper/388554/en

IEEE: Copy

Shahbod Seighalani, and TEIMOUR RAHMANI, “An Analysis of the Relationship between Monetary Shocks and Inflation Rate of CPI Components for Testing Price Stickiness,” THE JOURNAL OF PLANNING AND BUDGETING, vol. 23, no. 3 , pp. 3–22, 2018, [Online]. Available: https://sid.ir/paper/388554/en

Related Journal Papers