The US monetary performance prior to the 2008 crisis
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 3450-3461 |
| Journal / Publication | Applied Economics |
| Volume | 45 |
| Issue number | 24 |
| Online published | 20 Aug 2012 |
| Publication status | Published - 2013 |
Link(s)
Abstract
This article uses a Structural Vector Autoregressive (SVAR) approach to study the different shocks to the monetary performance in the two decades of the US economy prior to the 2008 financial crisis. By using the Federal Fund Rate as a measure of change in the monetary policy, this study shows that interest rate expectation is informative about the future movement of Federal Fund Rate and the anticipated monetary policy should be one of the crucial reasons in causing monetary and financial deterioration in the US economy. This article discusses a possible conjecture of a low interest rate trap when a persistent and prolonged low interest rate regime led to financial instability. © 2013 Taylor & Francis.
Research Area(s)
- Financial crisis, Interest rate, Monetary shocks
Citation Format(s)
The US monetary performance prior to the 2008 crisis. / Li, Kui-Wai.
In: Applied Economics, Vol. 45, No. 24, 2013, p. 3450-3461.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
