Positive Analysis of the Relationship between Inflation and Monetary Policy
Positive Analysis of the Relationship between Inflation and Monetary Policy
Author：Liu Jinquan, Zhang Xiaoyu Journal：Managerialist Date：2008(12)
Keywords inflation; monetary; SVAR Model; Kalman Filter
Abstract
It has been confirmed that monetary policy has real effect on output in the short run. But monetary policy effect on inflation by the SVAR model and the time varying model.We find that monetary policy only has little effect om inflation.So we should take other macroeconomic adjustment methods other than tight monetary policy, in order to prevent inflation.
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