Reports Outline Investment Findings from Federal Reserve Board (Monetary Policy Shocks: Data or Methods?): Investment

2025 DEC 22 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on Investment. According to news originating from Washington, District of Columbia, by NewsRx correspondents, research stated, “Different series of high-frequency monetary shocks can have a correlation coefficient as low as 0.3 and the same sign in only one half of observations. Both data and methods drive these differences, which are starkest when the federal funds rate is at its effective lower bound.”

Our news journalists obtained a quote from the research from Federal Reserve Board, “After documenting differences in monetary shock series, we explore their consequences for inference in several specifications. We find that empirical estimates of monetary policy transmission have few qualitative differences.”

According to the news editors, the research concluded: “We caution that inference may not be entirely robust to all shock constructions because qualitative differences can emerge when data and methods are interchanged.”

This research has been peer-reviewed.

For more information on this research see: Monetary Policy Shocks: Data or Methods? The B.E. Journal of Macroeconomics, 2025;25(2):595-659. The B.E. Journal of Macroeconomics can be contacted at: Walter De Gruyter Gmbh, Genthiner Strasse 13, D-10785 Berlin, Germany.

The news correspondents report that additional information may be obtained from Margaret M. Jacobson, Federal Reserve Board, 20TH & Constitut, Washington, DC 20551, United States. Additional authors for this research include Connor M. Brennan, Christian Matthes and Todd B. Walker.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1515/bejm-2024-0175. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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