Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/6241
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dc.contributor.authorTaş, Bedri Kamil Onur-
dc.date.accessioned2021-09-11T15:35:26Z-
dc.date.available2021-09-11T15:35:26Z-
dc.date.issued2011en_US
dc.identifier.issn0164-0704-
dc.identifier.urihttps://doi.org/10.1016/j.jmacro.2010.10.005-
dc.identifier.urihttps://hdl.handle.net/20.500.11851/6241-
dc.description.abstractUsing theoretical and empirical analyses, this paper shows that the expectation dynamics induced by information asymmetry between the Central Bank (CB) and the public can cause the price puzzle. The signalling and learning dynamics between the CB and a representative private-sector agent under asymmetric information is investigated. Inflation positively reacts to contractionary monetary policy because the change in the interest rate is perceived as a signal of the CB's private information about higher future inflation and output by the public. The empirical section of the paper validates this theoretical argument using a VAR specification about the US economy. Besides providing an explanation for the price puzzle, the results of this paper has practical implications about transparency and monetary policy. The theoretical and empirical findings indicate that asymmetric information causes significant frictions in the transmission mechanism of monetary policy. These frictions induce short-run undesired effects like increase in expected inflation and actual inflation as a response to contractionary monetary policy which is identified as "the price puzzle". (C) 2010 Elsevier Inc. All rights reserved.en_US
dc.language.isoenen_US
dc.publisherLouisiana State Univ Pren_US
dc.relation.ispartofJournal of Macroeconomicsen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectPrice puzzleen_US
dc.subjectAsymmetric informationen_US
dc.subjectVAR modelsen_US
dc.subjectMonetary policyen_US
dc.subjectKalman filteren_US
dc.subjectLearningen_US
dc.titleAn Explanation for the Price Puzzle: Asymmetric Information and Expectation Dynamicsen_US
dc.typeArticleen_US
dc.departmentFaculties, Faculty of Economics and Administrative Sciences, Department of Economicsen_US
dc.departmentFakülteler, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümütr_TR
dc.identifier.volume33en_US
dc.identifier.issue2en_US
dc.identifier.startpage259en_US
dc.identifier.endpage275en_US
dc.authorid0000-0001-5418-777X-
dc.identifier.wosWOS:000290068900011en_US
dc.identifier.scopus2-s2.0-79953054371en_US
dc.institutionauthorTaş, Bedri Kamil Onur-
dc.identifier.doi10.1016/j.jmacro.2010.10.005-
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.identifier.scopusqualityQ2-
item.openairetypeArticle-
item.languageiso639-1en-
item.grantfulltextnone-
item.fulltextNo Fulltext-
item.openairecristypehttp://purl.org/coar/resource_type/c_18cf-
item.cerifentitytypePublications-
crisitem.author.dept04.01. Department of Economics-
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection
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