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Has the U.S. economy become less interest rate sensitive?

Author

Listed:
  • Guangye Cao
  • Jonathan L. Willis

Abstract

Jonathan Willis and Guangye Cao investigate shifts in the economy?s sensitivity to interest rates by examining how total employment responds to changes in monetary policy.

Suggested Citation

  • Guangye Cao & Jonathan L. Willis, 2015. "Has the U.S. economy become less interest rate sensitive?," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 5-36.
    • Handle: RePEc:fip:fedker:00027
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    References listed on IDEAS

    as
    1. John Carter Braxton & Willem Van Zandweghe, 2013. "Has durable goods spending become less sensitive to interest rates?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 5-27.
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    13. Dynan, Karen E. & Elmendorf, Douglas W. & Sichel, Daniel E., 2006. "Can financial innovation help to explain the reduced volatility of economic activity?," Journal of Monetary Economics, Elsevier, vol. 53(1), pages 123-150, January.
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    Cited by:

    1. Bloesch, Justin & Weber, Jacob P., 2021. "Structural Changes in Investment and the Waning Power of Monetary Policy," SocArXiv 7zhqp, Center for Open Science.
    2. Michael D. Bauer & Eric Offner & Glenn D. Rudebusch, 2024. "Green Stocks and Monetary Policy Shocks: Evidence from Europe," Working Paper Series 2024-38, Federal Reserve Bank of San Francisco.
    3. Delis, Manthos D. & Iosifidi, Maria & Mylonidis, Nikolaos, 2021. "Industry heterogeneity in the risk-taking channel," Economic Modelling, Elsevier, vol. 104(C).
    4. Sungyup Chung, 2017. "Age and Gender Group Differences in Employment Responses to Monetary Policy Shock in a Small Open Economy: The Case of Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(2), pages 207-224, May.
    5. Karlye Dilts Stedman & Emily Pollard, 2023. "Why Has Monetary Policy Tightening Not Cooled the Labor Market Enough to Quell Inflation?," Economic Bulletin, Federal Reserve Bank of Kansas City, pages 1-4, March.

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