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Open market operations as a monetary policy shock measure in a quantitative business cycle model

Heer, Burkhard; Schabert, Andreas - 2000

This paper presents a business cycle analysis of monetary policy shocksmeasured by disturbances to open market operations, i.e. the ratio of open market papers to non-borrowed reserves. We find empirical evidence for the usefulness of this policy measure, as it predicts significant declines in...