earticle

영어

To analyze the effect of monetary policy shock on the economy is very important both for implementing the efficient monetary policy and exploring the casual relationship between the money and the income. In general, it is argued that the identification of policy shock plays a important role in estimating the policy effect on the macroeconomy. Up to this point, there are many papers estimating the effect of monetary policy shocks using much variety of identification restrictions in the context of structural vector autoregression. This paper provides a useful framework for reviewing the previous studies, focusing on the identification assumptions. Also, this paper summarize the identification of monetary policy shocks shown in the previous studies. After reviewing the previous works on this subject, this paper shows the following results; First, the papers with successful identification considers the interaction between the demand for and supply of money. Second, the variables reflecting the inflationary pressure are contained in the monetary policy reaction function. Third, it is shown that in the case of small open economy, information on the exchange rate is useful for identification of policy shocks and the block exogeneity restriction is widely adopted.