This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. Journal of Economic Perspectives
  4. Fall 1995
  5. The Monetary Transmission Mechanism: An Empirical Framework

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

The Monetary Transmission Mechanism: An Empirical Framework

  • John B. Taylor
Journal of Economic Perspectives
vol. 9, no. 4, Fall 1995
(pp. 11–26)
Download Full Text PDF
(Complimentary)

Abstract

This paper provides an overview of the monetary transmission mechanism describing the impact of changes in monetary policy on real GDP. Changes in financial market prices--including long-term interest rates and exchange rates--are the main vehicle for the transmission of policy. The framework incorporates rational expectations and policy rules. It is empirical and appears to fit the facts well.

Citation

Taylor, John B. 1995. "The Monetary Transmission Mechanism: An Empirical Framework." Journal of Economic Perspectives, 9 (4): 11–26. DOI: 10.1257/jep.9.4.11

JEL Classification

  • E52 Monetary Policy
  • E43 Determination of Interest Rates; Term Structure of Interest Rates
There are no comments for this article.
Login to Comment