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

Lennard, Jason LU (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:
author
organization
publishing date
type
Working Paper
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
2017-11-29 04:00:13
@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},
  keyword      = {E31,E32,E52,E58,N13,business cycles,gold standard,monetary policy,narrative identification},
  language     = {eng},
  month        = {02},
  note         = {Working Paper},
  number       = {155},
  pages        = {34},
  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},
  year         = {2017},
}