Production network structure and the impact of the monetary policy shocks: Evidence from the OECD

Petre Caraiani, Adriana Dutescu, Răzvan Hoinaru and Georgiana Oana Stănilă

Economics Letters, 2020, vol. 193, issue C

Abstract: We aim to answer the question on whether the production structure influences the transmission of monetary policy shocks. For 24 OECD economies, we estimate time-varying Bayesian VARs and compute the time-varying impulse response functions of GDP to monetary shocks. We analyze the production network structure using specific network measures. When looking at the relationship between the production networks measures and the impact of monetary policy shocks on GDP, upstreamness and downstreamness are found significant. We also identify an amplifying role for real estate and the financial intermediation sectors.

Keywords: Monetary policy; Bayesian VAR; Production networks (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:193:y:2020:i:c:s016517652030183x

DOI: 10.1016/j.econlet.2020.109271

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