Monetary Policy after the Great Moderation

Guillermo Peña

Journal of Central Banking Theory and Practice, 2020, vol. 9, issue 3, 5-26

Abstract: The interferences among some financial, economic and monetary variables are checked as an indicator of economic performance in the long run and for the monetary policy applied between the Great Moderation (GM) of 1987-2001 and the Global Financial Crisis of 2007-2009. For achieving this target, some Granger causality tests are applied to GDP growth, credit growth, and lending interest of 36 countries of the EU and the OECD for the full sample of 1987-2012 and the sub-sample of 2002-2007. Results corroborate the interferences among these variables for the discretionary monetary policy applied immediately after the GM, within the “Ad Hoc Era” or “lax period”, and independence when monetary policy was correctly applied and rules-based.

Keywords: Monetary policy; Economic growth; Financial crises; Great Moderation; Central Banking (search for similar items in EconPapers)
JEL-codes: E43 E50 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cbcg.me/repec/cbk/journl/vol9no3-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:9:y:2020:i:3:p:5-26

Access Statistics for this article

More articles in Journal of Central Banking Theory and Practice from Central bank of Montenegro Contact information at EDIRC.
Bibliographic data for series maintained by ().