Following Germany's Lead: Using International Monetary Linkages to Estimate the Effect of Monetary Policy on the Economy
追随德国:利用国际货币联系估计货币政策的经济效应
Forward-looking behavior on the part of the monetary authority makes it difficult to estimate the effect of monetary policy interventions on output. We present instrumental variables estimates of the impact of interest rates on quarterly real output for several European countries, using German interest rates as the instrument. These estimates confirm a strong forward-looking bias in least squares estimates that persists even conditional on standard controls for the history…