output) shortly after a monetary policy shock. To overcome this problem, we propose to estimate the VAR parameters under the … restriction that economic theory is not violated, while the shocks are still recursively identified. We solve this optimization …, generates theory-consistent impulse responses, and is as close as possible to the recursive scheme. …

higher consumption. Moreover, the shock absorption capability increases in an economy with CBDC. This particularly applies to …

We disentangle the effects of monetary policy announcements on real economic variables into an interest rate shock … component and a central bank information shock component. We identify both components using changes in interest rate futures and … that a contractionary interest rate shock appreciates the dollar, increases the excess bond premium, and leads to a decline …

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

shock is ampli ed and the economy is more likely to plunge into a recession. I assess whether different macro policies, such …