Hamilton, James D; Herrera, Ana Maria - In: Journal of Money, Credit and Banking 36 (2004) 2, pp. 265-86
A recent paper by Bernanke, Gertler, and Watson (1997) suggests that monetary policy could be used to eliminate any recessionary consequences of an oil price shock. This paper challenges this conclusion on two grounds. First, we question whether the Federal Reserve actually has the power to...