Smith, Andrew Lee; Keating, John W.; Kelly, Logan J.; … - Federal Reserve Bank of Kansas City - 2014
unconventional measures complicates the challenging task of characterizing the effects of monetary policy. We develop a novel method … choice of different series to replace variables that were popular in models of monetary policy but became problematic in the … policy indicator variable. The model is bolstered by its ability to produce plausible responses to a monetary policy shock in …