-trivial moving average component of the equilibrium representation, making finite order VARs a poor approximation of true adjustment …-based nonfundamentalness, thereby hampering shock identification via VAR methods. This notwithstanding, restricted DNK models are shown to … empirically tenable parameterizations. This alleviates concerns about identification and lag truncation bias: low-order Cholesky-VARs …

Great Recession. In ation, in contrast, has gone quiescent. This paper studies the sources of this disconnect using VARs and …

milder macroeconomic responses to a monetary policy shock estimated with our VAR in presence of high uncertainty. A version …

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 …