functions because the latter require shock identification, which is inherently a difficult process …

movements in the policy rate unrelated to economic conditions. We then compute the effects of a monetary policy shock on the … aggregate economy using local projection methods. We find that a contractionary monetary policy shock has a limited negative …

policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …

This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending … sectors can be summarized as follows. First, following a contractionary shock to monetary policy, net funds raised by the … business sector increases for roughly a year. Thereafter, as the recession induced by the policy shock gains momentum, net …

react in opposite directions to a shock to the real economy, and the response of inflation to uncertainty shocks vary across …