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Estimating the Effects of Monetary Policy: An Ongoing Evolution.

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Titel: Estimating the Effects of Monetary Policy: An Ongoing Evolution.
Autoren: Dilts Stedman, Karlye, Lusompa, Amaze, An, Phillip
Quelle: Economic Review (01612387). 10/2/2025, Vol. 110 Issue 6, p1-19. 19p.
Schlagwörter: *MONETARY policy, *COVID-19 pandemic, *GLOBAL Financial Crisis, 2008-2009, *BUSINESS cycles, EVALUATION methodology, CAUSAL models
Abstract: The article focuses on the evolving methods for estimating the effects of monetary policy, particularly through high-frequency identification, in light of recent economic events such as the global financial crisis and the COVID-19 pandemic. It discusses the challenges of accurately measuring the causal impact of unexpected monetary policy changes due to the simultaneous nature of economic conditions and policy decisions. The authors argue that traditional measurement windows, particularly the 30-minute window used for high-frequency identification, may no longer be adequate given the changes in monetary policy communication, such as the increased use of forward guidance and press conferences. They suggest that adapting measurement methods, potentially by extending the time frame for capturing market reactions, is necessary to accurately assess the effects of contemporary monetary policy. [Extracted from the article]
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Datenbank: Business Source Index
Beschreibung
Abstract:The article focuses on the evolving methods for estimating the effects of monetary policy, particularly through high-frequency identification, in light of recent economic events such as the global financial crisis and the COVID-19 pandemic. It discusses the challenges of accurately measuring the causal impact of unexpected monetary policy changes due to the simultaneous nature of economic conditions and policy decisions. The authors argue that traditional measurement windows, particularly the 30-minute window used for high-frequency identification, may no longer be adequate given the changes in monetary policy communication, such as the increased use of forward guidance and press conferences. They suggest that adapting measurement methods, potentially by extending the time frame for capturing market reactions, is necessary to accurately assess the effects of contemporary monetary policy. [Extracted from the article]
ISSN:01612387
DOI:10.18651/ER/v110n6StedmanLusompaAn