Permanent and Transitory Shocks in Real Output: Estimates from Nineteenth-Century and Postwar Economies
John Keating and
John Nye
Journal of Money, Credit and Banking, 1998, vol. 30, issue 2, 231-51
Abstract:
This paper reexamines Olivier J. Blanchard and Danny Quah's (1989) aggregate supply/demand model interpretation of output shocks using data from ten countries. Although postwar data support their interpretation, the model is not supported by nineteenth=century data. In the postwar period, permanent output shocks cause the price level to move in the opposite direction (like supply shocks) and temporary output shocks cause the price level to move in the same direction (like demand shocks). But with pre-World War I data, permanent output shocks typically cause price level movements in the same direction. The results are systematic and cannot be explained by data problems.
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (31)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:mcb:jmoncb:v:30:y:1998:i:2:p:231-51
Access Statistics for this article
Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West
More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().