Willems, Tim (2013) Analyzing the effects of US monetary policy shocks in dollarized countries. European Economic Review, 61. pp. 101-115. ISSN 0014-2921
Full text not available from this repository.Abstract
Identifying monetary policy shocks is difficult. Therefore, instead of trying to do this perfectly, this paper exploits a natural setting that reduces the consequences of shock misidentification. It does so by basing conclusions upon the responses of variables in three dollarized countries (Ecuador, El Salvador, and Panama). They import US monetary policy just as genuine US states do, but have the advantage that non-monetary US shocks are not imported perfectly. Consequently, this setting reduces the effects of any mistakenly included non-monetary US shocks, while leaving the effects of true monetary shocks unaffected. Results suggest that prices fall after monetary contractions; output does not show a clear response.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.journals.elsevier.com/european-economic... |
| Additional Information: | © 2013 Elsevier B.V. |
| Divisions: | LSE |
| Subjects: | E History America > E151 United States (General) H Social Sciences > HC Economic History and Conditions |
| Date Deposited: | 01 Jul 2014 14:30 |
| Last Modified: | 12 Dec 2024 00:30 |
| Projects: | ES/L500343/1 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/57359 |
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