We show that the impact of supply and monetary policy shocks on consumer prices is state-dependent. First, we let the … exhibit a more substantial and more persistent effect on downstream prices during periods of elevated inflation volatility … effective in State 2. Exogenously differentiating regimes by the level of inflation or the shock size does not reveal state …

. Applying a vector error correction model (VECM), we estimate the response of bank loans after a monetary policy shock taking … into account the reaction of the output level and the loan rate. We estimate our model to characterize the response of bank … loans by matching the theoretical impulse responses with the empirical impulse responses to a monetary policy shock …

real exchange rate, according to Keynesian views because it impacts output. Both views have merit because the effects of … government spending are asymmetric. A spending cut lowers output but does not alter the real exchange rate. A spending increase … appreciates the exchange rate but does not alter output unless there is economic slack. We establish these results in a small open …

Using 136 United States macroeconomic indicators from 1973 to 2017, and a factor augmented vector autoregression (FAVAR … our FAVAR model, which uses information on contractionary initiatives by the Federal Reserve, indicates that the …

monetary policy on asset prices and the macroeconomy. However, some recent studies have questioned both the exogeneity and the …

policy shock leads to a persistent fall in international output, a drop in global inflation rates, a rise in international … shock to foreign real GDP growth. …