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average rate of inflation that economic agents expect to prevail over the 10-year period following the surprise. The analysis … also addresses the effect of Federal Reserve communication and surprises in monetary policy actions on perceived inflation … indeed affect the expected rate of inflation. Further, there is evidence that surprises in monetary policy actions increase …
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This paper tests for the presence of asymmetric effects of monetary policy on output. The asymmetries that the authors examine are related to the size and sign of monetary policy shocks and are based on economic theory. Using M1 as the basis for measuring monetary policy shocks, they find...
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