A Monetarist Critique of ECB Monetary Policy in the Great Recession
25 Pages Posted: 17 Jul 2013 Last revised: 22 Nov 2014
Date Written: November 18, 2014
Since 2008, the Eurozone has undergone two recessions, which together constitute the Great Recession. The explanation offered here attributes them to contractionary monetary policy. Interpreted in a way consistent with monetarist principles, the New Keynesian model provides the framework for identifying the precipitating shocks as monetary.
Note: An earlier version of this paper was published with the title "ECB Monetary Policy in the Great Recession: A New Keynesian (Old Monetarist) Critique"
JEL Classification: E52, E58
Suggested Citation: Suggested Citation