Has Monetary Policy Become Less Powerful?

  • Jean Boiviny, Marc Giannoniz
  • Published 2001


Recent vector autoregression (VAR) studies have shown that monetary policy shocks have had a reduced e¤ect on the economy since the beginning of the 1980s. This paper investigates the causes of this change. First, we estimate an identi...ed VAR over the preand post-1980 periods, and corroborate the existing results suggesting a stronger systematic response… (More)


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