Mumtaz, Haroon; Theodoridis, Konstantinos - 2015
rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard …We use a simple New Keynesian model, with firm specific capital, non-zero steady-state inflation, long-run risks and … Epstein-Zin preferences to study the volatility implications of a monetary policy shock. An unexpected increases in the policy …
