Working Paper
Does monetary policy generate recessions?
Abstract: The issue of uncovering the effects of monetary policy is far short of resolution. In the identified VAR literature, restrictions have been imposed to identify the effects of unpredictable monetary policy disturbances. We offer critical views on the unreasonable assumptions in the existing work and argue for careful economic argument about identifying assumptions. We display a structural stochastic equilibrium model in which our VAR identification would produce correct results while drawing attention to the serious lack of time series fit in most of the DSGE literature.
Access Documents
File(s): File format is application/pdf https://www.frbatlanta.org/-/media/documents/research/publications/wp/1998/wp9812.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Atlanta
Part of Series: FRB Atlanta Working Paper
Publication Date: 1998
Number: 98-12