The Effects of Monetary Policy on the Real Economy
(2011) NEKM01 20101Department of Economics
- Abstract
- This paper looks for evidence of asymmetric effects of monetary policy on the real economy of the United States, the United Kingdom and Japan. In order to do this, a “new Keynesian” model is used as a basis with the regressions performed in a VAR setting. The results indicate that there is no empirical support for asymmetric effects of monetary policy shocks on the real economy. In fact, there is only vague evidence of any effects on the real economy whatsoever, for all countries under consideration. The estimation outputs reveal that no matter what lag length or sample size is chosen or if asymmetric aspects are taken into account, the effects of a monetary policy shock on the real economy are usually weak.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1776789
- author
- Hafstein, Birgir LU
- supervisor
- organization
- course
- NEKM01 20101
- year
- 2011
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- VAR model, Monetary policy, Asymmetric effects, New Keynesianism
- language
- English
- id
- 1776789
- date added to LUP
- 2011-02-15 13:49:56
- date last changed
- 2011-02-15 13:49:56
@misc{1776789, abstract = {{This paper looks for evidence of asymmetric effects of monetary policy on the real economy of the United States, the United Kingdom and Japan. In order to do this, a “new Keynesian” model is used as a basis with the regressions performed in a VAR setting. The results indicate that there is no empirical support for asymmetric effects of monetary policy shocks on the real economy. In fact, there is only vague evidence of any effects on the real economy whatsoever, for all countries under consideration. The estimation outputs reveal that no matter what lag length or sample size is chosen or if asymmetric aspects are taken into account, the effects of a monetary policy shock on the real economy are usually weak.}}, author = {{Hafstein, Birgir}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Effects of Monetary Policy on the Real Economy}}, year = {{2011}}, }