The DOI matches its OpenAlex record; 9 of the 9 references it cites were found in a registry or an index.
Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz
Open accessAbstract
This paper uses the historical record to isolate episodes in which there were large monetary disturbances not caused by output fluctuations. It then tests whether these monetary changes have important real effects. The central part of the paper is a study of postwar U.S. monetary history. We identify six episodes in which the Federal Reserve in effect decided to attempt to create a recession to reduce inflation. We find that a shift to anti-inflationary policy led, on average, to a rise in the unemployment rate of two percentage points, and that this effect is highly statistically significant and robust to a variety of changes in specification. We reach three other major conclusions. First, the real effects of these monetary disturbances are highly persistent. Second, the six shocks that we identify account for a considerable fraction of postwar economic fluctuations. And third, evidence from the interwar era also suggests that monetary disturbances have large real effects.
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Cites
The Dynamic Effects of Aggregate Demand and Supply Disturbances
Blanchard, O. J., & Quah, D. (1988) · National Bureau of Economic Research · doi:10.3386/w2737 · Cited by 3,899
Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression
Bernanke, B. (1983) · National Bureau of Economic Research · doi:10.3386/w1054 · Cited by 2,173
A Monetary History of the United States 1867-1960
Harrod, R. F., Friedman, M., & Jacobson, A. (1964) · The University of Chicago Law Review · doi:10.2307/1598725 · Cited by 2,111
How Big Is the Random Walk in GNP?
Cochrane, J. H. (1988) · Journal of Political Economy · doi:10.1086/261569 · Cited by 1,258
Productivity Trends in the United States
Derksen, J. B. D., & Kendrick, J. W. (1961) · Revue de l'Institut International de Statistique / Review of the International Statistical Institute · doi:10.2307/1401957 · Cited by 1,092
Friedman, M. R., & Schwartz, A. J. (1963) · The Review of Economics and Statistics · doi:10.2307/1927148 · Cited by 575
Monetary factors in the great depression
Hamilton, J. D. (1987) · Journal of Monetary Economics · doi:10.1016/0304-3932(87)90045-6 · Cited by 278
(1956) · Medical Entomology and Zoology · Cited by 257
Monetarist Interpretations of the Great Depression: An Evaluation and Critique
Gordon, R. J., & Wilcox, J. A. (1981) · Rochester studies in economics and policy issues · doi:10.1007/978-94-009-8135-5_3 · Cited by 80
Cited by
The Science of Monetary Policy: A New Keynesian Perspective
Clarida, R., Galí, J., & Gertler, M. (1999) · Journal of Economic Literature · doi:10.1257/jel.37.4.1661 · Cited by 4,916
Monetary policy, business cycles, and the behavior of small manufacturing firms
Gertler, M., & Gilchrist, S. (1994) · The Quarterly Journal of Economics · doi:10.2307/2118465 · Cited by 2,547
The financial accelerator, and the flight to quality
Bernanke, B., Gertler, M., & Gilchrist, S. (1996) · The Review of Economics and Statistics · doi:10.2307/2109844 · Cited by 2,351
What are the effects of monetary policy on output? Results from an agnostic identification procedure
Uhlig, H. (2005) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2004.05.007 · Cited by 2,307
Central bank independence and macroeconomic performance: some comparative evidence
Alesina, A., & Summers, L. H. (1993) · Journal of Money, Credit and Banking · doi:10.2307/2077833 · Cited by 1,833
Metadata
- Authors
- Romer, C., & Romer, D.
- Venue
- NBER Macroeconomics Annual
- Publisher
- University of Chicago Press
- Published
- 1989-01-01
- Volume
- 4
- Pages
- 121-121
- ISSN
- 0889-3365 (ISSN-L)
- OpenAlex
- W3125034469
- Cited by
- 699
- References
- 9
- FWCI
- 17.22
- Type
- journal article
- Language
- en
- Open access
- bronze
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
