and apply it to study the macroeconomic effects of the Covid shock. The initial outbreak is represented as the onset of a … new shock process where the shock loads on wedges associated with the model's usual shocks. Realizations of the Covid … shock come with news about its propagation, allowing us to disentangle the role of beliefs about the future of the pandemic …

a unified framework that incorpo- rates regime switching both in shock variances and in the inflation target. We propose …-series data is the one with synchronized shifts in shock variances across two regimes, and the fit does not rely on strong nominal … rigidities. We provide ev- idence that a shock to the capital depreciation rate, which resembles a financial shock, plays a …

cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …

one-standard-deviation shock to credit supply generates a loss of output by 1 percent …