01761cas a2200253 a 4500 AALejournalIMF006777 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455208951 1018-5941 BD-DhAAL BD-DhAAL Crowe, Christopher. Monetary Policy Matters : New Evidence Basedon a New Shock Measure / Christopher Crowe, S. Mahdi Barakchian. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (65 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Conventional VAR and non-VAR methods of identifying the effects of monetary policy shocks on the economy have found a negative output response to monetary tightening using U.S. data over the 1960s-1990s. However, we show that these methods fail to find this contractionary effect when the sample is restricted to the period since the 1980s, apparently due to changes in the policymaking environment that reduce their effectiveness. Identifying policy shocks using Fed Funds futures data, we recover the contractionary effect of monetary tightening on output and find that almost half of output variation over the period appears due to policy shocks. Mode of access: Internet Barakchian, S. Mahdi. IMF Working Papers; Working Paper ; No. 2010/230 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/230/001.2010.issue-230-en.xml IMF e-Library