external instruments produce responses in output and inflation consistent with both textbook theory and conventional monetary …

activity and inflation as latent variables. We incorporate these latent variables into a factor-augmented vector autoregression … activity and inflation, consistent with previous studies. In contrast to much of the literature, however, we find that central …-bank-determined changes in Chinese interest rates also have substantial impacts on economic activity and inflation, while other measures of …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after …

activity and inflation and present new evidence, using both a relatively unrestricted factor-augmented vector autoregression … activity and inflation in recent decades as compared to the effects before 1980. Our analysis suggests that these shifts are …