Innovation, productivity, and monetary policy

• 成果类型: Article; Proceedings Paper
• 署名作者: Moran, Patrick; Queralto, Albert
• 署名单位: University of Oxford; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2017.10.006
• 发表日期: 2018
• 页码: 24-41
• 关键词: Endogenous technology; business cycles; monetary policy

摘要

To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of tightening monetary policy more slowly than currently anticipated. In the model, monetary policy influences firms' incentives to develop and implement innovations. We use evidence on the dynamic effects of R&D and monetary shocks to estimate key parameters and assess model performance. The model suggests significant TFP losses due to the ZLB. Published by Elsevier B.V.