efficient combinations of output and inflation variances - and compared to actual policy performance. The study then evaluates …

Most of the reduction in GDP volatility since the 1983 is accounted for by a decline in comovement of output among … both within and between industries. As a result, the response of aggregate output to all types of shocks is dampened …. Structural changes accounted for more than 80 percent of the reduction in output volatility, thus weakening the case for “good …

The appropriate role for equity prices in monetary policy deliberations has been hotly debated for some time. Recent … work suggests that equity prices have affected monetary policy decisions above and beyond their indirect effect on the … different information set from the one used by the FOMC, which could bias the estimated coefficient on equity prices. The …