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Sweidan, O. Monetary Transmission: Testing the Post-Keynesian View after the Great Recession. Applied Economics Quarterly, 63(3), 233-258. https://doi.org/10.3790/aeq.63.3.233
Sweidan, Osama D. "Monetary Transmission: Testing the Post-Keynesian View after the Great Recession" Applied Economics Quarterly 63.3, , 233-258. https://doi.org/10.3790/aeq.63.3.233
Sweidan, Osama D.: Monetary Transmission: Testing the Post-Keynesian View after the Great Recession, in: Applied Economics Quarterly, vol. 63, iss. 3, 233-258, [online] https://doi.org/10.3790/aeq.63.3.233
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Monetary Transmission: Testing the Post-Keynesian View after the Great Recession

Sweidan, Osama D.

Applied Economics Quarterly, Vol. 63 (2017), Iss. 3 : pp. 233–258

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/aeq.63.3.233
Language
English
Pages
25
Keywords

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Author Details

Sweidan,Osama D., Department of Economics and Finance, United Arab Emirates University, PO Box, Abu Dhabi-Al-Ain.

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Abstract

Abstract

The paper presents an empirical investigation of the hypothesis that the Post-Keynesian (PK) view of structuralist endogeneity continues to explain the interest rate movements following the Great Recession of 2007 – 2009. We test the hypothesis by analyzing monthly data from the U.⁠S. economy covering the period 2009:07 to 2016:05 using the unrestricted vector autoregressive (VAR) model and the Granger causality tests. The findings from our paper support the structuralist PK view, which indicates the importance of the interest rate channel of monetary transmission.

JEL classifications: E52, E58

Keywords: Post Keynesians, Money supply endogeneity, Accommodative theory, Structural theory, VAR model, Granger causality

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