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ECB monetary policy in the recession: a New Keynesian (old monetarist) critique

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  • Robert L. Hetzel

Abstract

Use of the New Keynesian model to identify shocks points to contractionary monetary policy as the cause of the Great Recession in the Eurozone.

Suggested Citation

  • Robert L. Hetzel, 2013. "ECB monetary policy in the recession: a New Keynesian (old monetarist) critique," Working Paper 13-07, Federal Reserve Bank of Richmond.
    • Handle: RePEc:fip:fedrwp:13-07
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    File URL: http://www.richmondfed.org/publications/research/working_papers/2013/pdf/wp13-07.pdf
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    References listed on IDEAS

    as
    1. Heider, F. & Hoerova, M. & Holthausen, C., 2009. "Liquidity Hoarding and Interbank Market Spreads : The Role of Counterparty Risk," Discussion Paper 2009-40 S, Tilburg University, Center for Economic Research.
    2. Robert L. Hetzel, 2006. "Making the systematic part of monetary policy transparent," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 92(Sum), pages 255-290.
    3. Mehra, Yash P., 2001. "The bond rate and estimated monetary policy rules," Journal of Economics and Business, Elsevier, vol. 53(4), pages 345-358.
    4. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    5. Robert L. Hetzel, 1996. "Sterilized foreign exchange intervention: the Fed debate in the 1960's," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 21-46.
    6. Friedman, Milton & Schwartz, Anna J, 1991. "Alternative Approaches to Analyzing Economic Data," American Economic Review, American Economic Association, vol. 81(1), pages 39-49, March.
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    Cited by:

    1. David Laidler, 2013. "Reassessing the Thesis of the Monetary History," University of Western Ontario, Economic Policy Research Institute Working Papers 20135, University of Western Ontario, Economic Policy Research Institute.
    2. Muhammad Zeshan & Wasim Shahid Malik & Muhammad Nasir, 2019. "Oil Price Shocks, Systematic Monetary Policy and Economic Activity," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(1), pages 65-81.
    3. Winkler Adalbert, 2018. "Zehn Jahre nach dem Konkurs von Lehman Brothers: Ordnungspolitische Irrtümer in der Bewertung der EZB-Geldpolitik seit der globalen Finanzkrise," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 19(2), pages 141-162, July.

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    More about this item

    Keywords

    Monetary policy; Recessions; Keynesian economics;
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