Revisiting the macroeconomic effects of monetary policy shocks

Firmin Doko Tchatoka and Qazi Haque

School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: We shed new light on the effects of monetary policy shocks in the US. Gertler and Karadi (2015) suggest that movements in credit costs may result in substantial impact of monetary policy shocks on economic activity. Using the proxy SVAR framework, we show that once the Volcker disination period is left out and one focuses on the post-1984 period, monetary policy shocks have no signfcant effects on output, despite large movements in credit costs. Our finding is robust to weak identfcation and alternative measure of economic activity.

Keywords: Monetary policy shocks; Proxy-SVAR; Weak identifcation; Output dynamics. (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-cwa, nep-isf, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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https://media.adelaide.edu.au/economics/papers/doc/wp2021-02.pdf (application/pdf)

Related works:
Journal Article: Revisiting the Macroeconomic Effects of Monetary Policy Shocks (2024)
Working Paper: Revisiting the macroeconomic effects of monetary policy shocks (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2021-02

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