Liu, Zheng (contributor); Waggoner, Daniel F. (contributor); … - 2007
We assess the quantitative importance of expectation effects of regime shifts in monetary policy in a DSGE model that … allows the monetary policy rule to switch between a "bad" regime and a "good" regime. When agents take into account such …, provided that we allow some "reduced-form" parameters in the private sector to change with monetary policy regime. …