Baele, Lieven; Bekaert, Geert; Cho, Seonghoon; … - 2015
We estimate a New-Keynesian macro model accommodating regime-switching behavior in monetary policy and in macro shocks …. Systematic monetary policy switched to the activist regime in the 2000-2005 period through an aggressive lowering of interest … period. Output shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990 …