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The macroeconomic effects of monetary policy and financial crisis

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  • Douch, Mohamed

Abstract

In this paper we focus on postwar US data and incorporate new nancial measures and monetary policy shocks in a vector autoregression (VAR) system in order to test whether one or the other has any real effect on the economy. We nd econometric evidence that these shocks and events are exogenous, and therefore the exogenous nature of shocks to monetary policy and stock market crashes investigated in this study may help policymakers, especially regarding debates related to eventual relationships between optimal monetary policy and nancial stability.

Suggested Citation

  • Douch, Mohamed, 2005. "The macroeconomic effects of monetary policy and financial crisis," MPRA Paper 1120, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1120
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    Cited by:

    1. Guillermo Peña, 2017. "Money, Lending and Banking Crises," Economic Papers, The Economic Society of Australia, vol. 36(4), pages 444-458, December.

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    More about this item

    Keywords

    Financial crisis; monetary policy;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G1 - Financial Economics - - General Financial Markets

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