The Effects of Monetary Policy: A Meta-Analysis

37 Pages Posted: 21 Jul 2004

See all articles by Paul De Grauwe

Paul De Grauwe

London School of Economics & Political Science (LSE); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Centre for Economic Policy Research (CEPR)

Claudia Costa Storti

Banco de Portugal

Date Written: June 2004

Abstract

In this paper we perform a meta-analysis of the effects of monetary policies on output and prices. We use a sample of published papers on the effects of monetary policies in different countries. There is a large variation in the estimated effects of monetary policies on output and prices. We find that the use of different econometric methodologies is an important variable explaining these differences. In addition, we analyze the importance of macroeconomic variables. Thus we find that in countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the estimated effects of monetary policies remains unexplained. More research will have to be done to understand these large differences.

JEL Classification: E4, E5, E6

Suggested Citation

De Grauwe, Paul and Costa Storti, Claudia, The Effects of Monetary Policy: A Meta-Analysis (June 2004). CESifo Working Paper Series No. 1224. Available at SSRN: https://ssrn.com/abstract=567102

Paul De Grauwe (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Claudia Costa Storti

Banco de Portugal ( email )

Ave Almirante Reis 72
1150 Lisbon
Portugal
+351 21 313 0823 (Phone)
+351 21 352 3505 (Fax)

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