Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard
(2017) In Lund Papers in Economic History: General Issues- Abstract
- This paper investigates the causal effect of monetary policy on economic activity in the United Kingdom between 1890 and 1913. Based on the Romer and Romer (2004) narrative identification approach, I find that following a one percentage point monetary tightening, unemployment rose by 0.8 percentage points, while inflation fell by 2.7 percentage points. In addition, monetary policy shocks accounted for more than a quarter of macroeconomic volatility.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/7d36d71f-c349-4ba1-91b0-beba9db50a04
- author
- Lennard, Jason LU
- organization
- publishing date
- 2017-02-28
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- E31, E32, E52, E58, N13, business cycles, gold standard, monetary policy, narrative identification
- in
- Lund Papers in Economic History: General Issues
- issue
- 155
- pages
- 34 pages
- publisher
- Department of Economic History, Lund University
- ISSN
- 1101-346X
- language
- English
- LU publication?
- yes
- id
- 7d36d71f-c349-4ba1-91b0-beba9db50a04
- date added to LUP
- 2017-02-28 09:30:14
- date last changed
- 2018-11-21 21:30:16
@misc{7d36d71f-c349-4ba1-91b0-beba9db50a04, abstract = {{This paper investigates the causal effect of monetary policy on economic activity in the United Kingdom between 1890 and 1913. Based on the Romer and Romer (2004) narrative identification approach, I find that following a one percentage point monetary tightening, unemployment rose by 0.8 percentage points, while inflation fell by 2.7 percentage points. In addition, monetary policy shocks accounted for more than a quarter of macroeconomic volatility.}}, author = {{Lennard, Jason}}, issn = {{1101-346X}}, keywords = {{E31; E32; E52; E58; N13; business cycles; gold standard; monetary policy; narrative identification}}, language = {{eng}}, month = {{02}}, note = {{Working Paper}}, number = {{155}}, publisher = {{Department of Economic History, Lund University}}, series = {{Lund Papers in Economic History: General Issues}}, title = {{Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard}}, url = {{https://lup.lub.lu.se/search/files/22010406/LUP155.pdf}}, year = {{2017}}, }