Baele, Lieven; Bekaert, Geert; Cho, Seonghoon; … - 2015
We estimate a New-Keynesian macro model accommodating regime-switching behavior in monetary policy and in macro shocks … accommodating monetary policy before 1980, with activist monetary policy prevailing most but not 100% of the time there after …. Systematic monetary policy switched to the activist regime in the 2000-2005 period through an aggressive lowering of interest …