Data and Code for: Age Structure and the Impact of Monetary Policy

We study whether the effects of monetary policy are dependent onthe age structure of the population. We exploit cross-sectional variation inthe response of US states to an identified monetary policy shock. We findthat there are three distinct age groups. In response to an increase ininterest rates, the responses of private employment and personal income areweaker the greater the share of population under 35 years of age, arestronger the greater the share between 40 and 65 years of age, and arerelatively unaffected by the share older than 65 years. We find that all agegroups become more responsive to monetary policy shocks when the proportionof middle aged increases. We provide evidence consistent with middle agedentrepreneurs starting and expanding businesses in response to anexpansionary monetary shock.