
A. OVERVIEW
This folder contains the data and do-files that accompany the paper The real effects of monetary expansions: evidence from a large-scale historical experiment by Nuno Palma. The replication materials contain this README file, two STATA dataset ("liquidity.dta" and "datadescriptive.dta"). The do-file "MASTER.do" completes the analysis for the main body of the text by executing each of the eleven do-files that are necessary for the analysis. Each of the files can also be run separately through the "MASTER.do" file.  The replicator should expect the code for the "MASTER.do" to run for less than 10 minutes on a typical 2021 computer.  

B. DATA AVAILABILITY AND PROVENANCE STATEMENT:
See the published paper for all the data sources.

C. STATEMENT ABOUT RIGHTS
The authors of the manuscript have legitimate access to and permission to use the data used in this manuscript.

D. DATASET LIST:
The replication material consist of two datasets: "liquidity.dta" and "datadescriptive.dta". The sources for this data are described in detail in the paper.

E. SOFTWARE REQUIREMENTS
The replication requires the use of STATA/SE 16.  As noted in the dofile, one package must be installed in order to run the "MASTER.do" file: labutil. The code for installing this additional package is at the top of the dofile.

F. MEMORY AND APPROXIMATE RUNTIME REQUIREMENTS
The approximate time needed to reproduce the main analysis ("MASTER.do") using a standard 2021 computer is less than 10 minutes.

G. DESCRIPTION OF PROGRAMS
There is one master do-file "MASTER.do" (described in point G.1) and eleven main dofiles (described in G.2-G.12). 


G.1 MASTER.do
This do-file conducts the analysis for the paper, excluding the Online appendix. It first defines the directories and global macros used in the other files, including the main variables for the analysis and the robustness checks. It then links to all the other do-files and performs the analysis of these. This master file clearly explains what analysis is being conducted in each of the files that it links to. Each of the do-files that it links to is now listed below, in order of appearance in the MASTER.do file.

G.2 descriptive_figures.do 
This do-file prepares figures 4, 5, 6, and 8 in section 2.3.

G.3 descriptive_additionalfigures.do
This do-file prepares figures 2, 3, 7, and 11, 12 and 17, located in different sections of the paper.

G.4 projections_main_1700.do
This do-file prepares Figure 9 in section 3.1.

G.5 projections_countries_1700.do
This do-file prepares Figure 10 in section 3.2.

G.6 projections_EnglandIV_baseline_1700.do
This do-file prepares Figures 13 and 14 in section 3.4, as well as the results for Table 3, column 1, in section 3.4.

G.7 projections_EnglandIV_lag0_1700.do
This do-file prepares the results for Table 3, column 2, in section 3.4.

G.8 projections_EnglandIV_lag2_1700.do
This do-file prepares the results for Table 3, column 3, in section 3.4.

G.9 projections_EnglandIV_nocott_1700.do
This do-file prepares the results for Table 3, column 4, in section 3.4.

G.10 projections_EnglandIV_3y_1700.do
This do-file prepares the results for Table 3, column 5, in section 3.4.

G.11 projections_placebo_1700.do
This do-file prepares figure 15 from section 4.2.

G.12 projections_reversecausality_GDPIV_1700.do
This do-file prepares the information for Table 4 and Figure 16 from section 4.3.


H. INSTRUCTIONS TO REPLICATORS:
The instructor should open the "MASTER.do" file and first change the directories there (or alternatively leave the default directories), as explained in the do-file. Then, the replicator should run the "MASTER.do" file to produce all figures as well as the information required for the tables. By default, the figures will be produced in the folder where the datasets are located, but the replicator can change this at the top of the "MASTER.do" file, as is clearly explained in the file. If desired, the replicator can also separately run each code segment from the "MASTER.do" file.


I. REFERENCES USED IN THIS README FILE
Palma, N. (2021, forthcoming). The real effects of monetary expansions: evidence from a large-scale historical experiment. Review of Economic Studies.
