Existing theory and evidence on the eﬀects of monetary policy are reviewed. Substantial room for disagreement among economists remains. New evidence, based on multivariate time series studies of several countries, is presented. While certain patterns in the data consistent with eﬀective monetary policy are strikingly similar across countries, others, particularly the tendency of interest rate increases to predict high inflation, are harder to reconcile with eﬀective monetary policy.
Sims, Christopher A., "Interpreting the Macroeconomic Time Series Facts: The Effects of Moentary Policy" (1992). Cowles Foundation Discussion Papers. 1254.