Keywords :
sothattheprice puzzleisnotthere.Finally , monetarypolicyhasasizableeffectonbothrealandnominalvariables , A structuralfactormodelfor112USmonthlymacroeconomicseriesisusedtostudytheeffectsofmonetarypolicy.Monetarypolicyshocksareidentifiedusingastandardrecursivescheme , inwhichtheimpacteffectsonbothindustrialproductionandpricesare zero.Themainfindingsarethefollowing.First , afteracontractionaryshockpricesfallatallhorizons , sothatthe‘‘delayedovershooting’’puzzledisappears.Second , themaximaleffectonbilateralrealexchangeratesisobservedonimpact
