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Estudios de economía

versión On-line ISSN 0718-5286

Estudios de Economía vol.48 no.2 Santiago jul. 2021 


The relationship between price and financial stability in new monetary policy designs: the case of the US using the TVP-SVAR model

La relación entre estabilidad de precios y financiera en nuevos diseños de política monetaria: el caso de Estados Unidos usando un modelo TVP-SVAR

Ali Kemal Çelik1 

Ömer Yalçinkaya2 

Hatira Sadeghzadeh Emsen3 

1Department of Economics, Atatürk University, Erzurum, Turkey

2Department of Quantitative Methods, Ardahan University, Ardahan, Turkey

3Independent Researcher, Turkey


This study aims to explain the relationship between price and financial stability in monetary policy designs that have developed since the 1990s and to empirically examine the relationship between price and financial stability in the monetary policy designs of the US. To this effect, the study examines the time-varying structure of the relationship between price and financial stability in the US, where monetary policies are designed to achieve price stability, full employment and moderate long-term interest rate targets using the TVP-SVAR model for the period 1993:12-2020:12. The results of the study demonstrate the presence of a reciprocal relationship within the scope of the new environment hypothesis, which varies over time between price and financial stability in the US over the study period. These results broadly suggest the necessity of redesigning monetary policies in the US based on the propositions of the new environment hypothesis and considering the varying structure of the relationships, symmetrical or asymmetrical, between monetary and financial stability variables over time.

Keywords: Monetary policy designs; new environment hypothesis; US; TVP-SVAR


Este trabajo pretende explicar la relación entre estabilidad de precios y financiera en nuevos diseños de política monetaria desarrollados desde los noventas y examinarla empíricamente para el caso de Estados Unidos. Para ello se examina una estructura variante en el tiempo usando un modelo TVP-SVAR para el periodo 1993:12-2020:12. Se encuentra una relación variable en el tiempo entre estabilidad de precios y financiera. Estos resultados sugieren la necesidad de rediseñar la política monetaria.

Palabras clave: Diseño de política monetaria; TVP-SVAR

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Received: December 0, 2020; Accepted: August 0, 2021

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