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 …

of reduced business-cycle volatility. Supply shocks accounted for 80 percent of the volatility of inflation before 1984 …This paper investigates the sources of the widely noticed reduction in the volatility of American business cycles since … the mid 1980s. Our analysis of reduced volatility emphasizes the sharp decline in the standard deviation of changes in …

stimulus mostly generates inflation rather than output growth. To do this, I construct price-setting models with "volatility …Is monetary policy less effective at increasing real output during periods of high volatility than during normal times …? In this paper, I argue that greater volatility leads to an increase in aggregate price flexibility so that nominal …

inflation and GDP growth might have been slightly higher if Sweden had been a member of EMU since the launch in 1999, but also …