Unanticipated monetary policy and real economic activity: Some cross-regime evidence

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Abstract

Classical equilibrium models of business cycles predict several consequences of policy regime shift. This paper examines these predictions, using evidence from the post-1979 period, and by comparing several pre-war monetary regimes. The policy-invariance proposition and the Lucas hypothesis receive some support from the evidence, although some discrepancies remain.

Original languageEnglish (US)
Pages (from-to)439-459
Number of pages21
JournalJournal of Monetary Economics
Volume22
Issue number3
DOIs
StatePublished - 1988

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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