Innovation, Productivity, and Monetary Policy
By Patrick Moran, A. Queraltó. 2017
124 citations recorded by the source corpus.
To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of tightening monetary policy more slowly than currently anticipated. In the model, monetary policy influences firms’ incentives to develop and implement innovations. We use evidence on the dynamic effects of R&D and monetary shocks to estimate key parameters and assess model performance. The model suggests significant TFP losses due to the ZLB.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/6260ae5361607532a906d4fa4a359767423b906b
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In Economics and Econometrics
- Alan M. Taylor
- Ò. Jordà
- Sanjay R. Singh
- M. Schularick
- Giuseppe Cavaliere
- Björn Richter
- Thomas Steger
- S. Leybourne
Citations in the corpus
- The Long-Run Effects of Monetary Policy (2020, methodology): “Moran and Queralto (2018) estimate a causal effect of monetary policy shocks on TFP growth using a three-equation VAR model and Cholesky identification for the U.S. economy.”