We disentangle the effects of monetary policy announcements on real economic variables into an interest rate shock … component and a central bank information shock component. We identify both components using changes in interest rate futures and … that a contractionary interest rate shock appreciates the dollar, increases the excess bond premium, and leads to a decline …

, there is a conceptual component to all this as well. In contrast to the last century or more of monetary theory, which has … the asset side of the central bank's balance sheet. The implications for monetary theory are profound …