Journal Article

Changes in monetary policy effectiveness: evidence from large macroeconomic models

Abstract: This article evaluates changes in the aggregate effectiveness of monetary policy and changes in monetary policy transmission mechanisms by examining how traditional large-scale macroeconometric models have evolved in the last ten to fifteen years. The article analyzes shifts in model structure and sheds some light on the changing relationship between policy and the real economy by reporting simulations that use different historical versions of the models.

Keywords: Econometric models; Monetary policy; Macroeconomics;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1992

Volume: 17

Issue: Spr

Pages: 36-51