relevant for pass-through: beliefs about the expected duration of the shock and its interaction with price rigidities. We then … employ a hypothetical vignette to study the causal effect of nominal and real rigidities as well as the nature of the shock …

type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank …

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 …, generates theory-consistent impulse responses, and is as close as possible to the recursive scheme. …

discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model … minimal estimated degrees of myopia. The results indicate that the empirical evidence for cognitive discounting may be …