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An important stylized fact to emerge from the VAR estimates is that exogenous monetary policy shocks (also labelled unsystematic monetary policy) have a delayed, persistent, hump shaped effect on in.ation. I argue that this empirical pattern is fragile. In particular it disappears when one...
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exchange rate and the price level if a central bank implements an inflation target by means of a traditional Taylor rule. These … level to a temporary risk premium shock are larger and more persistent when the ZLB is binding. Our theoretical discussion …
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