Bachmann, Ruediger; Gödl-Hanisch, Isabel; Sims, Eric R. - National Bureau of Economic Research - 2021
effect on output but a persistent negative impact on prices. In contrast to alternative identification approaches, we do not … use differences between nowcasts of the output gap and inflation with final, revised estimates of these series to isolate … movements in the policy rate unrelated to economic conditions. We then compute the effects of a monetary policy shock on the …