RT Journal Article
T1 Delayed overshooting: is it an '80s puzzle?
A1 Kim, Seong Hoong
A1 Moon, Seongman
A1 Velasco, Carlos
AB We reinvestigate the delayed overshooting puzzle. Using a method ofsign restrictions,we find that delayed overshooting is primarily a phenomenonof the 1980s when the Fed was under the chairmanship of PaulVolcker. Related findings are as follows: (1) Uncovered interest parityfails to hold during the Volcker era and tends to hold during the post-Volcker era; (2) US monetary policy shocks have substantial impactson exchange rate variations but misleadingly appear to have small impactswhen monetary policy regimes are pooled. In brief, we confirmDornbusch’s overshooting hypothesis.
PB The University of Chicago Press
SN 0022-3808
YR 2017
FD 2017-10-01
LK https://hdl.handle.net/10016/34985
UL https://hdl.handle.net/10016/34985
LA eng
NO Support from the Ministerio Economía y Competitividad (Spain), grants ECO2010-19357,SEJ2007-62908, ECO2012-31748, ECO2014-57007p, and MDM 2014-0431, Comunidad de Madrid, and MadEco-CM(S2015/HUM-3444) is gratefully acknowledged.
DS e-Archivo
RD 1 sept. 2024