' demand for reserves moved over time? We provide a structural time-varying estimate of the slope of the reserve demand curve … approach to address endogeneity. Consistent with economic theory, our estimates show a nonlinear demand function that exhibits …

-shock specification, we identify, using sign restrictions, two policy shocks, monetary and fiscal, and two non-policy shocks, demand and … supply. We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply … prevails for GDP, while demand prevails for employment and inflation. (ii) Monetary and fiscal policy shocks have sizable …