Innovation, productivity, and monetary policy
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Innovation, productivity, and monetary policy. / Moran, Patrick; Queralto, Albert.
I: Journal of Monetary Economics, Bind 93, 01.2018, s. 24-41.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Innovation, productivity, and monetary policy
AU - Moran, Patrick
AU - Queralto, Albert
PY - 2018/1
Y1 - 2018/1
N2 - To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of tightening monetary policy more slowly than currently anticipated. In the model, monetary policy influences firms’ incentives to develop and implement innovations. We use evidence on the dynamic effects of R&D and monetary shocks to estimate key parameters and assess model performance. The model suggests significant TFP losses due to the ZLB.
AB - To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of tightening monetary policy more slowly than currently anticipated. In the model, monetary policy influences firms’ incentives to develop and implement innovations. We use evidence on the dynamic effects of R&D and monetary shocks to estimate key parameters and assess model performance. The model suggests significant TFP losses due to the ZLB.
KW - Business cycles
KW - Endogenous technology
KW - Monetary policy
U2 - 10.1016/j.jmoneco.2017.10.006
DO - 10.1016/j.jmoneco.2017.10.006
M3 - Journal article
AN - SCOPUS:85034845214
VL - 93
SP - 24
EP - 41
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
SN - 0304-3932
ER -
ID: 250538403