Monetary Policy and Sectoral Shocks : Did the Federal Reserve React Properly to the High-Tech Crisis?

Raddatz, Claudio ; Rigobon, Roberto

World Bank, Washington, DC

关键词: ACCOUNTING;    AGGREGATE DEMAND;    AUTOREGRESSION;    BENCHMARK;    CONSUMER PRICE INDEX;   

DOI  :  10.1596/1813-9450-3160
RP-ID  :  WPS3160

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors present an identificationstrategy that allows them to study the sectoral effects ofmonetary policy and the role that monetary policy plays inthe transmission of sectoral shocks. They apply theirmethodology to the case of the United States and find somesignificant differences in the sectoral responses tomonetary policy. They also find that monetary policy is asignificant source of sectoral transfers. In particular, ashock to equipment and software investment, which oneidentifies with the high-tech crisis, induces a response bythe monetary authority that generates a temporary boom inresidential investment and durables consumption but hasalmost no effect on the high-tech sector. Finally, theauthors perform an exercise evaluating the model'spredictions about the automatic and more aggressive monetarypolicy response to a shock similar to the one that hit theUnited States in early 2001. They find that the actual dropin interest rates is in line with the predictions of the model.