Working Papers in full text
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
Monetary Policy Matters: New Evidence Based on a New Shock Measure
|
Author/Editor: |
Barakchian, S. Mahdi | Crowe, Christopher W. |
| Authorized for Distribution: |
October 1, 2010 |
|
Electronic Access: |
Free Full Text (PDF file size is 1,196KB)
Use the free Adobe Acrobat Reader to view this PDF file.
Link to data for this title. (ZIP file size is 222KB)
|
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
|
|
Summary: Conventional VAR and non-VAR methods of identifying the effects of monetary policy shocks on the economy have found a negative output response to monetary tightening using U.S. data over the 1960s-1990s. However, we show that these methods fail to find this contractionary effect when the sample is restricted to the period since the 1980s, apparently due to changes in the policymaking environment that reduce their effectiveness. Identifying policy shocks using Fed Funds futures data, we recover the contractionary effect of monetary tightening on output and find that almost half of output variation over the period appears due to policy shocks.
|
|
|
|
Order a print copy
|
|
Series: |
Working Paper No. 10/230 |
|
Subject(s): |
Central bank policy | Economic models | External shocks | Monetary policy | United States |
|
Author's keyword(s): |
Monetary policy; VAR estimation; Fed Funds Futures; FOMC
|
|
|
|
|
| |
Published: |
|
October 1, 2010 |
|
|
|
|
| |
|
|
|
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA2010230 |
|
Pages: |
|
65 |
| |
Price: |
|
US$18.00 (Academic Rate: US$18.00 )
|
|
|
|
|
|
|
