Monetary Policy Neutrality? Sign Restrictions Go to Monte Carlo

Abstract

A new-Keynesian DSGEmodel in which contractionary monetary policy shocks generate recessions is estimated with U.S. data. It is then used in a Monte Carlo exercise to generate arti…cial data with which VARs are estimated. VAR monetary policy shocks are identi…ed via sign restrictions. Our VAR impulse responses replicate Uhlig’s (2005, Journal of Monetary… (More)

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Cite this paper

@inproceedings{Castelnuovo2012MonetaryPN, title={Monetary Policy Neutrality? Sign Restrictions Go to Monte Carlo}, author={Efrem Castelnuovo}, year={2012} }