This paper uses a cross-country database covering 46 economies over the post-war period to revisit two key monetary facts: (i) the long-run link between money growth and inflation and (ii) the link between credit growth and financial crises. The analysis reveals that the former has weakened over time, while the latter has become stronger. Moreover, the money-inflation nexus has been stronger in...
The DIW Europe Lecture is a lecture series by leading policy-makers and academics on the future of Europe. The series aims at fostering and informing the debate on key European policy issues, and at bringing this debate to the heart of Germany's policy-making in Berlin. The President of the European Central Bank, Mario Draghi, will look at Europe’s economic and financial future: which...
In recessions, predominantly men lose their jobs, which has been described by the term ”mancessions”. Against this background, we analyze whether fiscal expansions foster job creation predominantly for men. Yet, we find empirically that fiscal shocks lead to employment growth that is larger for women than for men. We show that the gender-specific employment effects of fiscal policy are...
In Germany and many other countries, financial advisors are required by law to assess their clients’ risk preferences in order to help them make informed and appropriate investment decisions. Most institutions that provide financial advice - banks, for instance - carry out this assessment using just one type of risk measure. Financial advisors might ask clients to answer a question about their attitudes ...
On Tuesday, October 25, the 2nd DIW Europe Lecture will be held on “Stability, Equity and Monetary Policy”. The President of the European Central Bank, Mario Draghi, will look at Europe’s economic and financial future: which challenges will Europe and the European Central Bank have to face in the months and years ahead? The event will be streamed live. The DIW Europe Lecture ...
Changes in residual volatility in vector autoregressive (VAR) models can be used for identifying structural shocks in a structural VAR analysis. Testable conditions are given for full identification for the case where the volatility changes can be modelled by a multivariate GARCH process. Formal statistical tests are presented for identification and their small sample properties are investigated via ...
A central question in the empirical monetary policy literature is how do asset prices respond to an unexpected monetary policy shock. We provide empirical evidence on this issue by augmenting the VAR model specification of Uhlig (2005) with the S&P 500 Composite Index, and estimating the model on monthly US data. We use the sign restrictions put forth in Uhlig (2005) as identifying assumptions...
