Macro seminar
Time : 12h15 – 13h30
Date : 04 Décembre 2023

Salle 3001

Sophocles MAVROEIDIS (Oxford) “Testing the effectiveness of unconventional monetary policy in Japan and the United States”

Abstract:  irrelevant. We develop a theoretical model that underpins our empirical test of this irrelevance hypothesis based on the simple idea that under the hypothesis, the short rate can be excluded in any empirical model that accounts for alternative measures of monetary policy. We test the hypothesis for Japan and the United States using a structural vector autoregressive model with an effective lower bound on the policy rate. We firmly reject the hypothesis but find that unconventional policy has had strong delayed effects.Unconventional monetary policy may make the effective lower bound on the short-term interest rate