Reducing our ignorance about monetary policy effects
AbstractBusiness news often gives the impression that the effects of monetary policy on the macroeconomy are well understood and predictable. The author of this article, however, believes that, far from sharing such certainty, policymakers and economists alike have knowledge limited by difficulties in sorting out causal factors in economic data. He holds that monetary policy effects are neither well understood nor easily predicted. ; The article presents five models of private and monetary policy behavior in the United States. Identical policy experiments--an unanticipated one-time monetary policy contraction--performed in each model show different qualitative and quantitative effects of policy from one model to the next. The author considers a variety of methods for ranking the models according to their plausibility and suggests that because each model has its limitations, it would be wise for policy advisors to be eclectic in formulating advice.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Atlanta in its journal Economic Review.
Volume (Year): (1995)
Issue (Month): Jul ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Daniel F. Waggoner & Tao Zha, 2000.
"Likelihood-preserving normalization in multiple equation models,"
2000-8, Federal Reserve Bank of Atlanta.
- Waggoner, Daniel F. & Zha, Tao, 2003. "Likelihood preserving normalization in multiple equation models," Journal of Econometrics, Elsevier, vol. 114(2), pages 329-347, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.