Abstract
I estimate the effects of Australian monetary policy using a structural vector autoregression identified using a variety of sign restrictions and a prior‐robust approach to Bayesian inference. Some identifying restrictions are not particularly informative. However, combining the restrictions allows us to draw useful inferences. The estimates suggest that an increase in the cash rate lowers output and consumer prices at horizons beyond a year or so. The results are consistent with the output response to a 100 basis point increase in the cash rate lying towards the upper end of the range of existing estimates.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
