Monetary policy shocks transmit through countercyclical markups: Bank of Canada paper


A Bank of Canada paper published on Friday finds that countercyclical markups in Canada account for a large fraction of the real effects of monetary policy shocks.

Oleksiy Kryvtsov and Virgiliu Midrigan, the paper's authors, use data on inventories in Canada with a New Keynesian model to examine the motive for inventory accumulation and how markups respond to monetary policy shocks. Kryvtsov and Midrigan are particularly interested in learning whether the real effects of monetary policy shocks a

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: