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the pre-1980 period. Measuring expectations of future monetary policy rates conditional on a news shock suggests that the …
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Recent studies attempt to quantify the empirical importance of news shocks (ie., anticipated future shocks) in business cycle fluctuations. This paper identifies news shocks in a dynamic stochastic general equilibrium model estimated with not only actual data but also forecast data. The...
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following a shock. Hence, differently from the VAR literature on oil shocks we do not need to rely on recursive identification …
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