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Keywords:

  • C22;
  • E31;
  • E32
  • cost channel;
  • Phillips curve;
  • GMM;
  • generalized empirical likelihood;
  • weak identification

We reexamine the empirical relevance of the cost channel of monetary policy (e.g., Ravenna and Walsh 2006), employing recently developed moment-conditions inference methods, including identification-robust procedures. Using U.S. data, our results suggest that the cost channel effect is poorly identified and we are thus unable to corroborate the previous results in the literature.