Structure from shocks
No 99-06, Working Paper from Federal Reserve Bank of Richmond
Arguments in favor of Keynesian models as opposed to real business cycle models are often made on the grounds that the correlations and impulse response patterns found in the latter are inconsistent with the data. A recent and prominent example of this reasoning is Gali (1999). But certain conclusions involve a certain joint hypothesis that implicitly assumes a certain characterization of monetary policy. This paper shows just how crucial the systematic portion of monetary policy is for interpreting many of the correlations and impulse response functions emphasized in the literature. Basically, the featured empirical facts are not useful for discerning the underlying price setting behavior of firms.
Keywords: Monetary policy; Business cycles; Financial crises; Prices (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed
Downloads: (external link)
http://www.richmondfed.org/publications/research/w ... /1999/pdf/wp99-6.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedrwp:99-06
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Paper from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by ().