A Monetarist Critique of ECB Monetary Policy in the Great Recession

25 Pages Posted: 17 Jul 2013 Last revised: 22 Nov 2014

See all articles by Robert L. Hetzel

Robert L. Hetzel

Federal Reserve Banks - Federal Reserve Bank of Richmond

Date Written: November 18, 2014

Abstract

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

Hetzel, Robert L., A Monetarist Critique of ECB Monetary Policy in the Great Recession (November 18, 2014). FRB Richmond Working Paper No. 13-07R, Available at SSRN: https://ssrn.com/abstract=2294605 or http://dx.doi.org/10.2139/ssrn.2294605

Robert L. Hetzel (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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