For the euro area, Peersman and Smets find that they cannot reject the null hypothesis, namely that, since the early 1970s, the response of the economy to monetary policy has remained  2  See Friedman (1972). 3  See Batini and Nelson (2001). 4  The structural VAR literature on monetary policy is surveyed in Christiano, Eichenbaum and Evans (2000).
5  See Peersman and Smets (2003). 6  Altissimo et al. (2006) and Maćkowiak and Smets (2008) survey the evidence concerning the flexibility of prices of individual goods and services in the euro area and in the United States. 7  See Smets and Wouters (2003, 2005). 2  BIS Review 27/2009  unchanged.