The Effect of Monetary Policy on Economic Output

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The Effect of Monetary Policy on Economic Output

Author Info

Joe Haslag () (Department of Economics, University of Missouri-Columbia)
R.W. Hafer (Southern Illinois University Edwardsville)
Garett Jones (Southern Illinois University Edwardsville)

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Abstract

There is substantial research effort devoted to identifying a sufficient statistic for monetary policy. The purpose of this paper is to broaden the scope of the on-going investigation along three dimensions. First, we follow up the Rudebusch-Svensson claim of parameter instability in the output regressions by examining the statistical stability of the parameter estimates with post-1996 data. Second, we examine whether alternative measures of the cyclical component affect the correlation between money supply, interest rates and output. Third, we consider alternative measures of the money supply, permitting us to assess the distinct roles of inside and outside money in terms of the correlation between each component and output.

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Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 0311.

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Length: 28 pgs.
Date of creation: 25 Sep 2003
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Handle: RePEc:umc:wpaper:0311

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Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-01-02 (All new papers)
NEP-CBA-2005-01-02 (Central Banking)
NEP-MAC-2005-01-02 (Macroeconomics)
NEP-MON-2005-01-02 (Monetary Economics)

References listed on IDEAS
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