Breitenlechner, Max; Georgiadis, Georgios; Schumann, Ben - 2021
We quantify spillbacks from US monetary policy based on structural scenario analysis and minimum relative entropy … spillbacks account for up to half of the overall slowdown in domestic real activity in response to a contractionary US monetary … policy shock. Moreover, spillbacks materialise as stock market wealth effects impinge on US consumption, and as Tobin's q …