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Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19()
The paper formulates the modeling of unconventional monetary policy and critically evaluates its effectiveness to address the Global Financial Crisis. We begin with certain principles guiding general scientific modeling and focus on Milton Friedman's 1968 Presidential Address that delineates th...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Published by Elsevier Inc. on behalf of The Society for Policy Modeling.
2021
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7456449/ https://www.ncbi.nlm.nih.gov/pubmed/32904465 http://dx.doi.org/10.1016/j.jpolmod.2020.07.001 |
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author | Bhar, Ramaprasad Malliaris, A.G. |
author_facet | Bhar, Ramaprasad Malliaris, A.G. |
author_sort | Bhar, Ramaprasad |
collection | PubMed |
description | The paper formulates the modeling of unconventional monetary policy and critically evaluates its effectiveness to address the Global Financial Crisis. We begin with certain principles guiding general scientific modeling and focus on Milton Friedman's 1968 Presidential Address that delineates the strengths and limitations of monetary policy to pursue certain goals. The modeling of monetary policy with its novelty of quantitative easing to target unusually high unemployment is evaluated by a Markov switching econometric model using monthly data for the period 2002–2015. We conclude by relating the lessons learned from unconventional monetary policy during the Global Financial Crisis to the recent bold initiatives of the Fed to mitigate the economic and financial impact of the Covid-19 pandemic on U.S. households and businesses. |
format | Online Article Text |
id | pubmed-7456449 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Published by Elsevier Inc. on behalf of The Society for Policy Modeling. |
record_format | MEDLINE/PubMed |
spelling | pubmed-74564492020-08-31 Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() Bhar, Ramaprasad Malliaris, A.G. J Policy Model Article The paper formulates the modeling of unconventional monetary policy and critically evaluates its effectiveness to address the Global Financial Crisis. We begin with certain principles guiding general scientific modeling and focus on Milton Friedman's 1968 Presidential Address that delineates the strengths and limitations of monetary policy to pursue certain goals. The modeling of monetary policy with its novelty of quantitative easing to target unusually high unemployment is evaluated by a Markov switching econometric model using monthly data for the period 2002–2015. We conclude by relating the lessons learned from unconventional monetary policy during the Global Financial Crisis to the recent bold initiatives of the Fed to mitigate the economic and financial impact of the Covid-19 pandemic on U.S. households and businesses. Published by Elsevier Inc. on behalf of The Society for Policy Modeling. 2021 2020-08-30 /pmc/articles/PMC7456449/ /pubmed/32904465 http://dx.doi.org/10.1016/j.jpolmod.2020.07.001 Text en © 2020 Published by Elsevier Inc. on behalf of The Society for Policy Modeling. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Bhar, Ramaprasad Malliaris, A.G. Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title | Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title_full | Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title_fullStr | Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title_full_unstemmed | Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title_short | Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19() |
title_sort | modeling u.s. monetary policy during the global financial crisis and lessons for covid-19() |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7456449/ https://www.ncbi.nlm.nih.gov/pubmed/32904465 http://dx.doi.org/10.1016/j.jpolmod.2020.07.001 |
work_keys_str_mv | AT bharramaprasad modelingusmonetarypolicyduringtheglobalfinancialcrisisandlessonsforcovid19 AT malliarisag modelingusmonetarypolicyduringtheglobalfinancialcrisisandlessonsforcovid19 |