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

Ekonomisk-historiska institutionen

National Institute of Economic and Social Research

Forskningsoutput: Tidskriftsbidrag › Artikel i vetenskaplig tidskrift › Peer review

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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.

Originalspråk	engelska
Sidor (från-till)	16-36
Tidskrift	Explorations in Economic History
Volym	68
DOI	https://doi.org/10.1016/j.eeh.2017.10.001
Status	Published - 2018 apr. 16

Ämnesklassifikation (UKÄ)

Ekonomisk historia

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10.1016/j.eeh.2017.10.001

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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.",

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

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Ämnesklassifikation (UKÄ)

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