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  1. The effectiveness of monetary policy
    an assessment
    Published: June 2005

    "When monetary policies are endogenous, the conventional VAR approach for detecting the effect of monetary policies is powerless. This paper proposes to test the implication of monetary policies along a different dimension. That implication is to... more

    Niedersächsische Staats- und Universitätsbibliothek Göttingen
    No inter-library loan
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    W 826 (2005.052)
    No inter-library loan

     

    "When monetary policies are endogenous, the conventional VAR approach for detecting the effect of monetary policies is powerless. This paper proposes to test the implication of monetary policies along a different dimension. That implication is to exploit the policy induced exogeneity of endogenous variables that are the source of monetary non-neutrality. We illustrate the idea by constructing a new Keynesian sticky wage model with capital accumulation and then testing the implications of optimal monetary policies for nominal wages under both complete and incomplete information. Econometric test using post war US data suggests that the nominal wage is exogenous with respect to lagged macro variables. Such exogeneity is consistent with new Keynesian models in which the monetary authority pursues active monetary policy based on information with a lag"--Federal Reserve Bank of St. Louis web site

     

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    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Working paper series / Federal Reserve Bank of St. Louis ; 2005,052
    Subjects: Geldpolitik; Lohnrigidität; Preisrigidität; Konjunktur; USA; Monetary policy; optimal monetary policy
    Scope: Online-Ressource, 32 p., text, graph. Darst.
    Notes:

    Includes bibliographical references

    Also available in print