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 … rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard …

unanticipated shock of the same size. The inversion of the volatility effects of news shocks between rational and boundedly rational …This paper studies the volatility implications of anticipated cost-push shocks (i.e. news shocks) in a New Keynesian …), anticipated cost-push shocks lead to a higher (lower) volatility in the output gap and in the central bank’s loss than an …

This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households …