Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard

Jason Lennard

doi:10.1016/j.eeh.2017.10.001

Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard

Jason Lennard

Department of Economic History

National Institute of Economic and Social Research (NIERS)

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigates the causal effects of monetary policy on the British economy during the classical gold standard. Based on the narrative identification approach, I find that following a one percentage point monetary tightening, unemployment rose by 0.9 percentage points, while inflation fell by 3.1 percentage points. In addition, monetary policy shocks accounted for a third of macroeconomic volatility.

Original language	English
Pages (from-to)	16-36
Journal	Explorations in Economic History
Volume	68
DOIs	https://doi.org/10.1016/j.eeh.2017.10.001
Publication status	Published - 2018 Apr 16

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Subject classification (UKÄ)

Economic History

Free keywords

business cycles
gold standard
monetary policy
narrative identification
E31
E32
E52
E58
N13

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10.1016/j.eeh.2017.10.001

Cite this

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KW - N13

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Did Monetary Policy Matter? Narrative Evidence from the Classical Gold Standard

Abstract

UN SDGs

Subject classification (UKÄ)

Free keywords

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