Chairperson Effects in Monetary Policy Shock Identification
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Chairperson Effects in Monetary Policy Shock Identification
Applied Economics Quarterly, Vol. 68 (2022), Iss. 3 : pp. 191–230
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Dan Groft, Ph.D., SEED Center 303, BBC 148, Director of H.C. Drew Center for Business and Economic Analysis, Associate Professor, McNeese State University, 4205 Ryan Street, Lake Charles, LA 70605.
References
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Abstract
Monetary policy shocks can come from a variety of sources, including chairpersons of the Federal Reserve. Chairpersons may have different preferences as to which variables to put the most weight on, respond differently to political pressures, or have different personalities affecting the ability to gain consensus among participants. This paper investigates the effects of controlling for changes in chairperson when measuring monetary policy shocks in the Romer and Romer (AER 2004) framework. The results show that different chairpersons are a substantial source of shocks to policy.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Dan Groft: Chairperson Effects in Monetary Policy Shock Identification | 191 | ||
| 1. Introduction | 191 | ||
| 2. Data and Interest Rates | 192 | ||
| 3. Results | 197 | ||
| Differential Responses | 197 | ||
| Separate Regressions | 199 | ||
| Investigation of Monetary Policy Shocks | 213 | ||
| Comparison with RR Measure over Meetings | 218 | ||
| Effects on Output and Price | 220 | ||
| 4. Conclusion | 229 | ||
| References | 230 |