EconPapers    
Economics at your fingertips  
 

Monetary disturbances matter for business fluctuations in the G-7

Fabio Canova and Gianni De Nicolo
Additional contact information
Gianni De Nicolo: https://carey.jhu.edu/faculty/faculty-directory/gianni-de-nicolo-phd

No 660, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: This paper examines the importance of monetary disturbances for cyclical fluctuations in real activity and inflation. It employs a novel identification approach which uses the sign of the cross-correlation function in response to shocks to assign a structural interpretation to orthogonal innovations. We find that monetary shocks significantly drive output and inflation cycles in all G-7 countries; that they are the dominant source of fluctuations in three of the seven countries; that they contain an important policy component, and that their impact is time varying.

Keywords: Business cycles; Group of Seven countries; Monetary policy; Inflation (Finance) (search for similar items in EconPapers)
Date: 2000
New Economics Papers: this item is included in nep-dge and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.federalreserve.gov/pubs/ifdp/2000/660/default.htm (text/html)
http://www.federalreserve.gov/pubs/ifdp/2000/660/ifdp660.pdf (application/pdf)

Related works:
Journal Article: Monetary disturbances matter for business fluctuations in the G-7 (2002) Downloads
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:fip:fedgif:660

Access Statistics for this paper

More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().

 
Page updated 2025-03-30
Handle: RePEc:fip:fedgif:660