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Evidence from dollarized countries in Latin America suggests that monetary policy has an effect on prices, but not output

Willems, Tim (2014) Evidence from dollarized countries in Latin America suggests that monetary policy has an effect on prices, but not output. LSE American Politics and Policy (14 Jul 2014). Website.

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Abstract

Over the past three decades, monetary policy has become the tool of choice for policymakers who wish to influence the economy. But does pulling the lever of monetary policy actually give the intended result, or are policy changes simply responses to economic developments? Using Latin American countries that use the dollar as a natural experiment, Tim Willems finds that when the U.S. Federal Reserve contracts the money supply, this leads to a fall in prices, and little initial movement of output.

Item Type: Online resource (Website)
Official URL: http://blogs.lse.ac.uk/usappblog/
Additional Information: © 2014 The Author; Online
Divisions: LSE
Subjects: F History United States, Canada, Latin America > F1201 Latin America (General)
H Social Sciences > HB Economic Theory
Sets: Collections > LSE American Politics and Policy (USAPP) Blog
Date Deposited: 13 Aug 2014 15:54
Last Modified: 25 May 2020 23:18
URI: http://eprints.lse.ac.uk/id/eprint/58973

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