econometric issues are addressed including estimation of the number of dynamic factors and tests for the factor restrictions …

actions are explained solely by its forecasts of inflation and real activity. Finally, we explore the possibility of …

rates. The temporal pattern of the depreciation in U.S. nominal exchange rates following a positive monetary policy shock is …

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 …

whether changes in the interest rate are due to changes in the expected inflation rate or the real interest rate …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after … an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …