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https://hdl.handle.net/10419/20794
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | di Giovanni, Julian | en |
dc.contributor.author | McCrary, Justin | en |
dc.contributor.author | von Wachter, Till | en |
dc.date.accessioned | 2009-01-28T16:16:49Z | - |
dc.date.available | 2009-01-28T16:16:49Z | - |
dc.date.issued | 2005 | - |
dc.identifier.uri | http://hdl.handle.net/10419/20794 | - |
dc.description.abstract | Forward-looking behavior on the part of the monetary authority leads least squares estimatesto understate the true growth consequences of monetary policy interventions. We presentinstrumental variables estimates of the impact of interest rates on real output growth forseveral European countries, using German interest rates as the instrument. We compare thisidentification strategy to the vector autoregression approach, and give an interpretation of ourestimates that is appropriate in a dynamic context. Moreover, we show that the differencebetween least squares and instrumental variables estimates provides bounds for the degreeof endogeneity in monetary policy. The results confirm a considerable downward bias ofestimates that do not account for potential forward-looking monetary policy decisions. Thebias is higher for countries whose monetary policy was more independent of Germany. | en |
dc.language.iso | eng | en |
dc.publisher | |aInstitute for the Study of Labor (IZA) |cBonn | en |
dc.relation.ispartofseries | |aIZA Discussion Papers |x1495 | en |
dc.subject.jel | J60 | en |
dc.subject.jel | E52 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | monetary policy | en |
dc.subject.keyword | forward looking bias | en |
dc.subject.keyword | instrumental variables | en |
dc.subject.stw | Geldpolitik | en |
dc.subject.stw | Zinspolitik | en |
dc.subject.stw | Deutsch | en |
dc.subject.stw | Konjunkturzusammenhang | en |
dc.subject.stw | Erwartungstheorie | en |
dc.subject.stw | Schätzung | en |
dc.subject.stw | EU-Staaten | en |
dc.subject.stw | Deutschland | en |
dc.title | Following Germany's Lead : Using International Monetary Linkages to Identify the Effect of Monetary Policy on the Economy | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 481440070 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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