Bekaert, Geert; Cho, Seonghoon; Moreno, Antonio; Baele, … - National Bureau of Economic Research (NBER) - 2011
. Key to our estimation strategy is the use of survey-based expectations for inflation and output. We identify accommodating … shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990, suggesting active … monetary policy may have played role in anchoring inflation expectations. Shocks and policy regimes jointly drive the …