Policy Effects in the Post Boom U.S. Economy

36 Pages Posted: 20 Jan 2005

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: January 2005

Abstract

The paper analyzes the question why the U.S. economy in the 2000:4-2004:3 period was sluggish in light of the large expansionary fiscal and monetary policies that took place. The answer does not appear to be that there were large structural changes in the economy or systematic bad shocks. This paper tests for such changes and shocks, and the results are generally negative. Instead, the main culprits seem to be large negative effects from declines in the stock market and exports. Although not tested in this paper, some of the decline in exports may be the result of the stock market decline, in which case most of the explanation is simply the stock market decline itself.

Keywords: fiscal policy, monetary policy

JEL Classification: E00

Suggested Citation

Fair, Ray C., Policy Effects in the Post Boom U.S. Economy (January 2005). Cowles Foundation Discussion Paper No. 1497; Yale ICF Working Paper No. 04-49. Available at SSRN: https://ssrn.com/abstract=650322

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
189
Abstract Views
3,354
rank
168,203
PlumX Metrics