Blas, Beatriz de - In: Contributions to Macroeconomics 9 (2009) 1, pp. 1531-1531
This paper analyzes the decreased volatility of U.S. macroeconomic variables starting in the 1980's in a model where monetary policy is affected by financial frictions. The model is estimated for postwar U.S. data with a break in 1981:3, allowing for changes in the policy rule, shock processes...