Replication data for: Pushing on a String: US Monetary Policy Is Less Powerful in Recessions

Principal Investigator(s): View help for Principal Investigator(s) Silvana Tenreyro; Gregory Thwaites

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Project Citation:

Tenreyro, Silvana, and Thwaites, Gregory. Replication data for: Pushing on a String: US Monetary Policy Is Less Powerful in Recessions. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114109V1

Project Description

Summary: We investigate how the response of the US economy to monetary policy shocks depends on the state of the business cycle. The effects of monetary policy are less powerful in recessions, especially for durables expenditure and business investment. The asymmetry relates to how fast the economy is growing, rather than to the level of resource utilization. There is some evidence that fiscal policy has counteracted monetary policy in recessions but reinforced it in booms. We also find evidence that contractionary policy shocks are more powerful than expansionary shocks, but contractionary shocks have not been more common in booms. So this asymmetry cannot explain our main finding.

Scope of Project

JEL Classification:
      E21 Macroeconomics: Consumption; Saving; Wealth
      E22 Investment; Capital; Intangible Capital; Capacity
      E32 Business Fluctuations; Cycles
      E52 Monetary Policy

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V1 [2019-10-12]

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