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Title: Age Structure and the Impact of Monetary Policy
We exploit cross-sectional variation in the response of US states to an identified monetary policy shock to study how the impact of monetary policy varies with the age structure of the population. We find that the economy’s response is weaker the greater the share of population under 35 years of age and stronger the greater the share between 40 and 65. We find that all age groups become more responsive to monetary policy shocks when the proportion of the middle-aged increases. We provide evidence consistent with middle-aged entrepreneurs starting and expanding businesses in response to an expansionary monetary shock. (JEL E23, E24, E32, E43, E52, J11, R23)  more » « less
Award ID(s):
1919362
PAR ID:
10508100
Author(s) / Creator(s):
;
Editor(s):
Gilchrist, Simon
Publisher / Repository:
American Economic Association
Date Published:
Journal Name:
American economic journal Macroeconomics
Volume:
14
Issue:
4
ISSN:
1945-7715
Page Range / eLocation ID:
136-173
Subject(s) / Keyword(s):
monetary policy demographics
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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