that 60% of disequilibrium errors from the previous year’s shock converge back to the long-run equilibrium in the current …

We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U ….S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption … technological innovations reduce inflation. The technology news shock became the predominant source of the business cycle from the …

prices as the economic theory suggest. The effects of the loose monetary policy, which is captured with a negative shock to … tight monetary policy, which is captured with a positive shock to interest rate, decrease the exchange rate, output and …. Moreover, as the magnitude of shock increases, the difference between the effects of tight and loose monetary policy policies …

shock in the US reduces firms' inflation and cost expectations in Uruguay. This result contrasts with the inflationary … effect of this shock on the Uruguayan economy, suggesting uncertainty about the policy regime. We discuss the issues and …

financial accelerator mechanism is working, a price-level targeting rule dominates. One caveat is that the source of the shock … plays an important role. Once the financial shock is not operative, the gain from a price-level targeting rule decreases …