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Epstein-Zin preferences to study the volatility implications of a monetary policy shock. An unexpected increases in the policy … volatility effects of the shock are driven by agents' concern about the (in)ability of the monetary authority to reverse …
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capture the truth, whereas impulse-response functions to a monetary policy shock exhibit little change across regimes. Since …
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capture the truth, whereas impulse-response functions to a monetary policy shock exhibit little change across regimes. Since …
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Staggered prices are a fundamental building block of New Keynesian dynamic stochastic general equilibrium models. In the standard model, prices are uniformly staggered but recent empirical evidence suggest that deviations from uniform staggering are common, This paper analyzes how...
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