Romer and Romer ask ‘does monetary policy matter?’ – again
Study based on “narrative approach” predicts major impact from recent Fed tightening
Wife-and-husband team Christina Romer and David Romer have repeated one of the “fundamental questions of macroeconomics”, asking for the second time, “does monetary policy matter?”.
In a new paper, published by the National Bureau of Economic Research, they revisit analysis they first carried out for a 1989 paper, which was also published by the NBER.
Both papers deploy what Romer and Romer call “the narrative approach”. The method draws “systematic evidence” from qualitative sources such as
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