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We document that monetary policy has a substantial impact on innovation activities. After a tightening shock of 100 … basis points, research and development (R&D) spending declines by about 1 to 3 percent and venture capital (VC) investment …-based aggregate innovation index, declines by up to 9 percent in the following 2 to 4 years. Based on previous estimates of the …
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This paper investigates the role of three likely factors in driving the steady deterioration of the US external balance: US technology developments, changes in the US government fiscal position and the Fed’s monetary policy. Estimating several Vector Autoregressions on US data over the period...
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