{"product_id":"finance-and-economics-discussion-series-measuring-the-effects-of-monetary-policy-a-factor-augmented-vector-autoregressive-favar-approach-9781288713431","title":"Finance and Economics Discussion Series: Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (Favar) Approach","description":"Structural vector autoregressions (VARs) are widely used to trace out the effect of monetary policy innovations on the economy. However, the sparse information sets typically used in these empirical models lead to at least two potential problems with the results. First, to the extent that central banks and the private sector have information not reflected in the VAR, the measurement of policy innovations is likely to be contaminated. A second problem is that impulse responses can be observed only for the included variables, which generally constitute only a small subset of the variables that the researcher and policymaker care about. In this paper we investigate one potential solution to this limited information problem, which combines the standard structural VAR analysis with recent developments in factor analysis for large data sets. We find that the information that our factor-augmented VAR (FAVAR) methodology exploits is indeed important to properly identify the monetary transmission mechanism. Overall, our results provide a comprehensive and coherent picture of the effect of monetary policy on the economy.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=AUTH-5293645\"\u003eUnited States Federal Reserve Board\u003c\/a\u003e, \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=AUTH-10619202\"\u003eBen S. Bernanke\u003c\/a\u003e\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Bibliogov\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 02\/06\/2013\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 52\u003cbr\u003e\u003cb\u003eBinding Type:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.24lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.69h x 7.44w x 0.11d\u003cbr\u003e\u003cb\u003eISBN13:\u003c\/b\u003e 9781288713431\u003cbr\u003e\u003cb\u003eISBN10:\u003c\/b\u003e 1288713436\u003cbr\u003e\u003cb\u003eBISAC Categories:\u003c\/b\u003e\u003cbr\u003e- \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=CAT-POL\"\u003ePolitical Science\u003c\/a\u003e | \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=BISAC-POL000000\"\u003eGeneral\u003c\/a\u003e\u003cbr\u003e\u003cp\u003e\u003ci\u003eThis title is not returnable\u003c\/i\u003e\u003cbr\u003e\u003c\/p\u003e","brand":"Bibliogov","offers":[{"title":"Default Title","offer_id":44585132523757,"sku":"9781288713431","price":16.75,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0550\/8097\/6621\/products\/img_b4dbeae0-65bf-4eed-a2f0-2a7ec616d5a0.jpg?v=1702156690","url":"https:\/\/sureshotbooks.com\/products\/finance-and-economics-discussion-series-measuring-the-effects-of-monetary-policy-a-factor-augmented-vector-autoregressive-favar-approach-9781288713431","provider":"SureShot Books Publishing LLC","version":"1.0","type":"link"}