Unites States of America (USA). We confirm the heterogeneity of Okun's coefficient across country, and its time … and USA in between. Policy wise, we claim that austerity policies may have unexpected adverse effects on job creation if …

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 …

a unified framework that incorpo- rates regime switching both in shock variances and in the inflation target. We propose …-series data is the one with synchronized shifts in shock variances across two regimes, and the fit does not rely on strong nominal … rigidities. We provide ev- idence that a shock to the capital depreciation rate, which resembles a financial shock, plays a …