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Systematic Monetary Policy and the Effects of Oil Price Shocks

Author

Listed:
  • Ben S. Bernanke

    (Princeton University)

  • Mark Gertler

    (New York University)

  • Mark Watson

    (Princeton University)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ben S. Bernanke & Mark Gertler & Mark Watson, 1997. "Systematic Monetary Policy and the Effects of Oil Price Shocks," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 91-157.
  • Handle: RePEc:bin:bpeajo:v:28:y:1997:i:1997-1:p:91-157
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    macroeconomics; monetary policy; Federal Reserve; stabilization; VAR; recession; oil prices;
    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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