What explains the varying monetary response to technology shocks in G-7 countries?
By: Neville Francis, Michael T. Owyang, and Athena T. Theodorou.
Contributors: Owyang, Michael T.; Theodorou, Athena T.
Series: Working paper ;; 2004-002C; Working paper (Federal Reserve Bank of St. Louis : Online) ;; 2004-002C.
Publisher: Federal Reserve Bank of St. Louis
Published: 2004
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Monetary policy -- Group of Seven countries -- Effect of technological innovations.
Description: "In a recent paper, Galí, Lopez-Salido, and Valles (2003) examined the Federal Reserve's response to VAR-identified technology shocks.  They found that during the Martin-Burns-Miller era, the Fed responded to technology shocks by overstabilizing output, while in the Volcker-Greenspan era, the Fed adopted an inflation -targeting rule.  We extend their analysis to countries of the G-7; moreover, we consider the factors that may contribute to differing monetary responses across countries.  Specifically, we find a relationship between the volatility of capital investment, type of monetary policy rule, the responsiveness of the rule to output and inflation fluctuations, and the response to technology shocks"--Federal Reserve Bank of St. Louis web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/27/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.