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Monetary shocks,Industry features and Relative Prices fluctuations
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TitleMonetary shocks,Industry features and Relative Prices fluctuations  
AuthorLiu Shijing , Chen Changsheng and Xu Zhaoyuan  
OrganizationDevelopment Research Center of the State Council;;  
Key WordsIndustry Features; Monetary Shocks; Relative Price 
AbstractThe effect of monetary shocks on price is always an interet thesis attracting many researcher’s attention. However, most of them just focus on the overall price, and pay less attion on the price dispersion. In fact, prices of different marktes respond differently to the same monetary shocks. The aim of this paper is to answer the question why does the pirce dispersion occur,and verify that the key factors are the supply elasticity and technology progress. Faced with the monetary shocks, the price of industy whose supply elasticity is small or technology improves slow will adjust firstly, which will result in change of relative price. And it is this relative price change that makes the monetary policy show non-neutral quality. 
Serial NumberWP212 
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