Global Monetary Policy Shocks in the G5: A Svar Approach

Identification of Monetary Policy Shocks with External Instrument SVAR

We explore the use of external instrument SVAR to identify monetary policy shocks. We identify a forward guidance shock as the monetary shock component having zero instant impact on the policy rate. A contractionary forward guidance shock raises both future output and price level, stressing the relative importance of revealing policymakers’ view on future output and price level over committing ...

Infinite-variance, alpha-stable shocks in monetary SVAR

The Effects of Monetary and Fiscal Policy Shocks on the Industry Sector of Iran’s Economy: SVAR Approach over the Period 2004-2017

 In comparison with other productive sectors of economy, the growth of the industry has become one of the most essential approaches to economic development. This study explores the effects of monetary & fiscal policy shocks on production, employment and wages in the industry sector of Iran’s economy over the period 2004 - 2017. In this research, using time series data and econometrics technique...

Monetary Policy and Credit Supply Shocks

The depth and duration of the 2007–09 recession serves as a powerful reminder of the real consequences of financial shocks. Although channels through which disruptions in financial markets can affect economic activity are relatively well understood from a theoretical perspective, assessing their quantitative implications for the real economy remains a considerable challenge. This paper examines...

Monetary Policy Response to Oil Price Shocks

How should monetary authorities react to an oil price shock? The New Keynesian literature has concluded that ensuring complete price stability is the optimal thing to do. In contrast, this paper argues that a meaningful trade-off between stabilizing inflation and the welfare relevant output gap arises in a distorted economy once one recognizes (i) that oil (energy) cannot be easily substituted ...