The impact of monetary policy on economic growth in America's economy using a new approach tvp-favar

Asemeh Gholamrezapour Amiri; Zong Gang

Asemeh Gholamrezapour Amiri Beijing University of Technology, China
Zong Gang Beijing University of Technology, China

Keywords: Economic Growth, Inflation, Interest Rates, Liquidity, TVP- FAVAR.

Abstract

This article explores the impact of monetary policy on Economic Growth of the state. There is an immense effect of monetary policy on Economic Growth of U.S.A. In this regard variables have been studied to prove the hypothesis. The data of past 47 years from 1970 to 2016 has been used for driving the result. To determine the relationship between two Monetary Policy on Economic Growth TVP-FAVR technique has been used. Based on the results of economic growth in the short term, medium term and long term positive impact on economic growth. Interest rates on short-term, medium-term and long-term impact on economic growth as negative, positive, increase and decrease. Inflation in the short term, medium term and long term has positive impact on economic growth by decreasing weak, weak positive of reducing dwindling.

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Author Biographies

Asemeh Gholamrezapour Amiri, Beijing University of Technology, China

Department of Economics and Management, Beijing University of Technology, Beijing100124, China

Zong Gang, Beijing University of Technology, China

Department of Economics and Management, Beijing University of Technology, Beijing100124, China

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