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Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard

Lennard, Jason LU (2018) In Explorations in Economic History 68. p.16-36
Abstract
This paper investigates the causal effects of monetary policy on the British economy during the classical gold standard. Based on the narrative identification approach, I find that following a one percentage point monetary tightening, unemployment rose by 0.9 percentage points, while inflation fell by 3.1 percentage points. In addition, monetary policy shocks accounted for a third of macroeconomic volatility.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
business cycles, gold standard, monetary policy, narrative identification, E31, E32, E52, E58, N13
in
Explorations in Economic History
volume
68
pages
42 pages
publisher
Elsevier
external identifiers
  • scopus:85033457834
ISSN
0014-4983
DOI
10.1016/j.eeh.2017.10.001
language
English
LU publication?
yes
id
1ceedeff-ceb3-44bc-8b8b-aaf83749d02a
date added to LUP
2017-10-18 08:52:01
date last changed
2018-04-18 08:54:53
@article{1ceedeff-ceb3-44bc-8b8b-aaf83749d02a,
  abstract     = {This paper investigates the causal effects of monetary policy on the British economy during the classical gold standard. Based on the narrative identification approach, I find that following a one percentage point monetary tightening, unemployment rose by 0.9 percentage points, while inflation fell by 3.1 percentage points. In addition, monetary policy shocks accounted for a third of macroeconomic volatility.},
  author       = {Lennard, Jason},
  issn         = {0014-4983},
  keyword      = {business cycles,gold standard,monetary policy,narrative identification,E31,E32,E52,E58,N13},
  language     = {eng},
  month        = {04},
  pages        = {16--36},
  publisher    = {Elsevier},
  series       = {Explorations in Economic History},
  title        = {Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard},
  url          = {http://dx.doi.org/10.1016/j.eeh.2017.10.001},
  volume       = {68},
  year         = {2018},
}