Davig, Troy; Doh, Taeyoung - In: The Review of Economics and Statistics 96 (2014) 5, pp. 862-875
Using Bayesian methods, we estimate a Markov-switching New Keynesian (MSNK) model that allows shifts in the monetary policy reaction coefficients and shock volatilities with U.S. data. We find that a more aggressive monetary policy regime was in place after the Volcker disinflation and before...