Abstract
The paper presents an empirical investigation of the hypothesis that the Post-Keynesian (PK) view of structuralist endogeneity continues to explain the interest rate movements following the Great Recession of 2007 2009. We test the hypothesis by analyzing monthly data from the U.S. economy covering the period 2009:07 to 2016:05 using the unrestricted vector autoregressive (VAR) model and the Granger causality tests. The findings from our paper support the structuralist PK view, which indicates the importance of the interest rate channel of monetary transmission.
| Original language | English |
|---|---|
| Pages (from-to) | 233-257 |
| Number of pages | 25 |
| Journal | Applied Economics Quarterly |
| Volume | 63 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2017 |
Keywords
- Accommodative theory
- Granger causality
- Money supply endogeneity
- Post Keynesians
- Structural theory
- VAR model
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)