Fed does not respond to oil price shocks: CEPR paper
The argument that the Federal Reserve's systematic monetary policy responses to inflation caused by oil-price crises caused aggregate fluctuations in the US economy is an incorrect one, according to a paper published by the Centre for Economic Policy Research (CEPR) last Monday.
The authors, Lutz Kilian and Logan Lewis, take issue with the view popularised by Bernanke, Gertler and Watson in their 1997 work and argue that there is no evidence of systematic monetary policy action in the face of an
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