Publication
Aug 2001
This paper investigates within a SVAR framework the effects of anticipated monetary policy in the euro area. Building on a procedure recently proposed by Cochrane which yields the response of output to an anticipated monetary policy impulse, we show that in the past twenty years anticipated monetary policy has had a considerable influence on output. Moreover, we compute the output effects of the systematic monetary policy response to aggregate demand and sup- ply shocks and find that monetary policy pursues a counter-cyclical policy in response to demand shocks and, despite considerable lags, is pro-cyclical with regard to supply shocks.
Download |
English (PDF, 87 pages, 441 KB) |
---|---|
Author | Jan Gottschalk, Florian Höppner |
Series | Kiel Institute Working Papers |
Issue | 1074 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2001 Kiel Institute for the World Economy |