Permanent and Transitory Shocks in Real Output: Estimates from Nineteenth-Century and Postwar Economies

Keating, John W.; Nye, John V. C.

doi:10.2307/2601211

Cited by 33 publications

(30 citation statements)

References 8 publications

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“…For three of the nations, there is no Granger causality, but for the Philippines and Greece, it is the case that prices and output both Granger-cause each other. These results are similar to those obtained by Keating and Nye (1998) who found that prices and output generally do not Granger cause each other.…”

Section: W Milessupporting

confidence: 82%

Fixed exchange rates and sticky prices in emerging markets

Miles

2003

J of Intl Development

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In the wake of financial crises in emerging markets, firmly fixed exchange rates and even dollarization have been advocated as a means to decrease vulnerability. There are many important new issues related to fixing the exchange rate and financial vulnerability, but one long-time vital concern for a fixed currency regime persists: the flexibility of domestic prices and wages. In the presence of high nominal rigidities, fixed rates can lead to large output costs in the aftermath of negative macroeconomic shocks. Employing a method previously applied to the gold standard fixed rate regime, we find generally flat aggregate supply curves in a sample of five emerging markets. This indicates substantial inflexibility of prices, and large losses in terms of income and employment in a fixed exchange rate regime subsequent to negative shocks. © 2003 John Wiley & Sons, Ltd.

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Section: W Milessupporting

confidence: 82%

Fixed exchange rates and sticky prices in emerging markets

Miles

2003

J of Intl Development

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“…Using the Balke-Gorden output series, Keating and Nye (1998) estimate a bivariate vector autoregression (VAR) model of inflation and output growth for the US over the periods 1869-1913 and 1950-1994. They then identify aggregate demand and supply shocks by assuming, in the manner of Blanchard and Quah (1989), that supply shocks alone have permanent real effects, which allows them to decompose the variance of output into separate supply-and demand-shock components.…”

Section: Standardmentioning

confidence: 99%

Has the Fed been a failure?

Selgin

Lastrapes

White

2012

Journal of Macroeconomics

105

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“…, Bayoumi and Eichengreen (1994), Bordo (1993), Faust and Leeper (1997), Gamber and Joutz (1993), Karras (1994), Keating and Nye (1998), Keating and Nye (1999) and Lastrapes and Selgin (1995). However, Keating and Nye (1998) find evidence that permanent output shocks are associated with aggregate demand in many economies before World War I.…”

Section: A Partial List Includesmentioning

confidence: 99%