Does Monetary Policy Matter? Narrative Versus Structural Approaches
16 Pages Posted: 4 Jan 2007 Last revised: 29 Oct 2022
Date Written: July 1989
Abstract
This paper compares results from the narrative approach of Romer and Romer (1989) to those from the structural approach regarding the effects of monetary policy on real output. The results from both approaches lead to the conclusions that monetary policy matters and that the effects build slowly following a monetary policy shock. The narrative approach, however, leads to larger and more persistent effects than does the structural approach. Reasons are advanced in the paper as to why this might be so.
Suggested Citation: Suggested Citation
Fair, Ray C., Does Monetary Policy Matter? Narrative Versus Structural Approaches (July 1989). NBER Working Paper No. w3045, Available at SSRN: https://ssrn.com/abstract=375300
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.