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Systematic Monetary Policy and the Effects of Oil Price Shocks

Author

Listed:
  • Bernanke, Ben S.
  • Gertler, Mark
  • Waston, Mark

Abstract

Macroeconomic shocks such as wil price increases induce a systematic (endogenous) response of monetary policy. We develop a VAR-based technique for decomposing the total economic effects of a given exogenous shock into the portion attributable directly to the shock and the part arising from the policy response to the shock.

Suggested Citation

  • Bernanke, Ben S. & Gertler, Mark & Waston, Mark, 1997. "Systematic Monetary Policy and the Effects of Oil Price Shocks," Working Papers 97-25, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:97-25
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    PRICES ; BUSINESS CYCLES ; MONETARY POLICY;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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