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Review over Empirical Evidence on Real Effects of Monetary Policy

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  • Sun, Rongrong

Abstract

This paper reviews and discusses the empirical literature on the impact of monetary policy on output. We focus on the evolution of methods that these studies have applied and demonstrate the established fact that monetary policy has significant impact on output. Throughout the review, we particularly highlight two problems in estimating the effects of monetary policy: the problem of how to measure monetary policy and the identification problem.

Suggested Citation

  • Sun, Rongrong, 2014. "Review over Empirical Evidence on Real Effects of Monetary Policy," MPRA Paper 58513, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58513
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    References listed on IDEAS

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    More about this item

    Keywords

    monetary policy; non-neutrality; systematic monetary policy reactions; vector autoregression;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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