The Monetary Transmission Mechanism: An Empirical Framework

John Taylor

Journal of Economic Perspectives, 1995, vol. 9, issue 4, 11-26

Abstract: This paper provides an overview of the monetary transmission mechanism describing the impact of changes in monetary policy on real GDP. Changes in financial market prices--including long-term interest rates and exchange rates--are the main vehicle for the transmission of policy. The framework incorporates rational expectations and policy rules. It is empirical and appears to fit the facts well.

JEL-codes: E43 E52 Q28 (search for similar items in EconPapers)
Date: 1995
Note: DOI: 10.1257/jep.9.4.11
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Citations: View citations in EconPapers (282)

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Working Paper: The monetary transmission mechanism: an empirical framework (1995)
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