Arbeitspapier

The interplay between financial conditions and monetary policy shocks

We study the interplay between monetary policy and financial conditions shocks. Such shocks have a significant and similar impact on the real economy, though with different degrees of persistence. The systematic fed funds rate response to a financial shock contributes to bringing the economy back towards trend, but a zero lower bound on policy rates can prevent this from happening, with a significant cost in terms of output and investment. In a retrospective analysis of the U.S. economy over the past 20 years, we decompose the realization of economic variables into the contributions of financial, monetary policy, and other shocks.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2016-11

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Bassetto, Marco
Benzoni, Luca
Serrao, Trevor
Event
Veröffentlichung
(who)
Federal Reserve Bank of Chicago
(where)
Chicago, IL
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Bassetto, Marco
  • Benzoni, Luca
  • Serrao, Trevor
  • Federal Reserve Bank of Chicago

Time of origin

  • 2016

Other Objects (12)