Browsing by Author "Abaquita, Marie Socorro Grace B."
Now showing 1 - 1 of 1
Results Per Page
Sort Options
Item Restricted Empirical evidence on the impact of U.S. Expansionary monetary policy on the Philippine economy(2003-10) Abaquita, Marie Socorro Grace B.; Reside, RenatoThis paper measures the impact of US expansionary monetary policy, through innovations of the Federal funds rate on U.S. Gross Domestic Product and consumer price index. The study was further extended to how the Philippine Gross Domestic Product and the inflation rate respond to Federal funds rate innovations. Four variable unrestricted V ARs were estimated using quarterly time series data for the period 1983-2001. The findings of this paper are as follows. First, empirical results on the output effects of monetary policy shocks tend to support the hypothesis that expansionary monetary policy matter in the determination of output. Second, with respect to the price level, impulse responses show that an expansionary monetary policy shock matter in the determination of price changes as well. However, impulse response estimates of the price level encounter a price puzzle.