deflator inflation, real GDP growth, and the rate of growth of M2. We identify 4 shocks-monetary policy, demand non …, with (e.g.) significant increases in the long-run coefficients on inflation and money growth around the time of the Volcker … macroeconomic environment of the last two decades. First, the Great Inflation was due, to a dominant extent, to large demand non …

. Key to our estimation strategy is the use of survey - based expectations for inflation and output. We identify … period. Output shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990 …, suggesting active monetary policy may have played role in anchoring inflation expectations. Shocks and policy regimes jointly …

stabilizes inflation and output. The estimation of this model, which comprises forward-looking versions of the IS and the … this simple model matches the dynamic properties of the output gap, inflation and the interest rate in EMU quite accurately …. We also perform several exercises that show the response of output, inflation and interest rates to different kinds of …