Are the lags in the effects of monetary policy variable?

The Vanishing Liquidity Effect of Money on Interest: Analysis and Implications for Policy

“…Tanner (1979) investigated the variability of the lags in the effects of money on income concluding that "the lags in the effects of monetary policy were substantially longer in 1974 than they were twenty years earlier" (p. 114). There is some evidence suggesting that this has not been the case.…”

“…Given the increase in the number of parameters to be estimated with the varying parameter tion in a macroeconomic setting see Tanner (1979). over the past twelve months, the variable distributed lag approach may be estimated over the 1951-79 period as reported in table 3.1° As mentioned above, the y's are the estimated fixed weights while the contribution of the variable weights, the 6P terms, are eyaluated at the sample mean of P. To derive the aggregate weights we sum + 8 P as shown in the third column of table 3.…”

The Phenomenon of Lag in Application of the Measures of Monetary Policy

“…Friedman (1972), continuing one of his previous works and using the data from the USA and UK, published empirical evidence of the lag of actions of monetary policies (the amount of money, for instance) and its result in the way of inflation, and by doing so confirming his hypothesis from the past. Tanner (1979) tested the variability of lag between the actions of monetary policies and the results in the change of production. His results showed that the length of lag is highly variable.…”

Central bank credibility and forecasting

“…Cargill and Meyer (1978) concluded that the lag is influenced by the stage of the business cycle at which the monetary policy stance is changed. Testing for the significance of the stage of the business cycle and stance of monetary policy, Tanner (1979) argued that, while the lag varies systematic ally with the stance of monetary policy, the lag is not predictable over the business cycle. Studying 1955-79, Carlson (1980 estimated that the lag from money to prices shortened during the 1970s to ap proximately 3 years, from 5 years.…”