residuals of the policy rule equation at these shock dates accordingly. In spite of its utmost agnostic nature, this approach …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

output) shortly after a monetary policy shock. To overcome this problem, we propose to estimate the VAR parameters under the … restriction that economic theory is not violated, while the shocks are still recursively identified. We solve this optimization … “almost recursively identified approach with parameter restrictions” leads to a solution that avoids an estimation bias …

Moments (TVP-GMM) framework. Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada …, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets … of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

inflation. Hence, the initial response of inflation to monetary shocks is not sufficient to discriminate across models and for …

combine low inflation targets and high levels of wealth inequality …