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This paper evaluates the effects of forward guidance and large-scale asset purchases (LSAP) when the nominal interest rate reaches the zero lower bound. I investigate the effects of the two policies in a dynamic new Keynesian model with financial frictions adapted from Gertler and Karadi (2011,...
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trading around quarterly earnings announcements is either directionally motivated and/or volatility motivated. We found … evidence that is consistent with the idea that option investors have private information prior to positive earnings …
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