linked to the monetary policy regime. Before and after the "Great Inflation", nominal wages moved in the same direction as … the (required) adjustment of real wages, and in the opposite direction of the price response. During the "Great Inflation … increasing inflation volatility. Using a standard DSGE model, we show that these stylized facts, in particular the estimated …

-specific models include a Phillips curve determining inflation, an IS curve determining output, a Taylor Rule determining interest …. We discuss estimation of impulse response functions and variance decompositions in such large systems, and present … through error spillover effects. Bootstrapped error bands are also provided for the cross country responses of a shock to the …

data on monetary policy shock estimates for 29 economies obtained from more than 280 monetary models in the literature …. Consistent with the predictions from our hypothesis we find: Monetary policy shock estimates obtained from New Keynesian DSGE … contamination is more severe for economies that are more susceptible to financial spillovers in the data; and the shock estimates …

intermediation turns an otherwise diversifiable source of idiosyncratic economic uncertainty, the 'risk shock', into a systemic force …. - DSGE model ; Financial frictions ; Financial shocks ; Bayesian estimation ; Lending channel ; Funding channel …

The paper studies how a prolonged period of subdued price developments may induce a de-anchoring of inflation … learning, choosing among a set of alternative forecasting models. The analysis is accompanied by empirical evidence on the … properties of inflation expectations in the euro area. Our results also suggest that monetary policy may lose effectiveness if …