Does Monetary Policy Generate Recessions?

  • CHRISTOPHER A. SIMS, Tao Zha, toTao Zha
  • Published 1996


We consider two kinds of answers to the title question: Do random shifts in monetary policy account for historical recessions, and would changes in the systematic component of monetary policy have allowed reductions in inflation or output variance without substantial costs. The answer to both questions is no. We use weak identifying assumptions and include… (More)


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