Are the effects of monetary policy shocks big or small?
By: Olivier Coibion
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 17034; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17034.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "This paper studies the small estimated effects of monetary policy shocks from standard VAR's versus the large effects from the Romer and Romer (2004) approach.  The differences are driven by three factors: the different contractionary impetus, the period of reserves targeting and lag length selection.  Accounting for these factors, the real effects of policy shocks are consistent across approaches and most likely medium.  Alternative monetary policy shock measures from estimated Taylor rules also yield medium-sized real effects and indicate that the historical contribution of monetary policy shocks to real fluctuations has been significant, particularly during the 1970s and early 1980s"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 8/2/2011.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.