This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Macroeconomics: Vol. 4 No. 2 (April 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro Forthcoming Articles

Are the Effects of Monetary Policy Shocks Big or Small?

Article Citation

Coibion, Olivier. 2012. "Are the Effects of Monetary Policy Shocks Big or Small?" American Economic Journal: Macroeconomics, 4(2): 1-32.

DOI: 10.1257/mac.4.2.1

Abstract

This paper studies the small estimated effects of monetary policy shocks from standard VARs versus the large effects from the Romer and Romer (2004) approach. The differences are driven by three factors: the different contractionary impetus, the period of reserves targeting, and lag length selection. Accounting for these factors, the real effects of policy shocks are consistent across approaches and most likely medium. Alternative monetary policy shock measures from estimated Taylor rules also yield medium-sized real effects and indicate that the historical contribution of monetary policy shocks to real fluctuations has been significant, particularly during the 1970s and early 1980s. (JEL E32, E43, E52)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (3.13 MB) | Online Appendix (226.20 KB)

Authors

Coibion, Olivier (College of William and Mary)

JEL Classifications

E32: Business Fluctuations; Cycles
E43: Interest Rates: Determination, Term Structure, and Effects
E52: Monetary Policy

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Macroeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us