IDEAS home Printed from https://ideas.repec.org/a/oup/ecinqu/v25y1987i2p341-49.html
   My bibliography  Save this article

A Market-Based Test of the Effect of Monetary Policy

Author

Listed:
  • Levi, Maurice
  • Shapiro, Alan C

Abstract

This paper tests the rational expectations-natural rate hypothesis withou t basing expectations on time series estimates. Instead, market-based data are used. Unexpected money supply changes are determined via th e Fisher Effect and the Quantity Equation. This introduces errors of a very different kind than the traditional approach, and yet the resu lts are remarkably similar to those generated using time series estim ates. Unanticipated money shocks are shown to exert a significant but only short-run effect on a real output, suggesting only a short-run Phillips curve trade-off. Anticipated money growth appears to have no affect on real output. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Levi, Maurice & Shapiro, Alan C, 1987. "A Market-Based Test of the Effect of Monetary Policy," Economic Inquiry, Western Economic Association International, vol. 25(2), pages 341-349, April.
    • Handle: RePEc:oup:ecinqu:v:25:y:1987:i:2:p:341-49
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Devadoss, Stephen, 1994. "A Study Of Macro Rational Expectations Hypothesis Tests On Commodity Markets," A.E. Research Series 305120, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    2. Shelley, Gary L. & Wallace, Frederick H., 1995. "A reexamination of Mishkin's neutrality test," Journal of Economics and Business, Elsevier, vol. 47(3), pages 255-265, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ecinqu:v:25:y:1987:i:2:p:341-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.