parameters of several equations of the DSGE model. In addition, our results indicate that the volatility of structural shocks has … shock volatilities provides the best model fit. Estimates from the selected DSGE model suggest that the mid-1970s were …

volatility by 21%. We also suggest three alternative tools for policymakers to dampen the effects of endogenous credit standards … on macroeconomic volatility. First, the introduction of credit growth to the monetary policy succeeds in counteracting … the fluctuation of lending, and thus decreasing the additional volatility considerably. Second, the exchange rate …

(productivity shocks) and external shocks to terms of trade and the foreign demand. A comparison of the volatility of the … in terms of their implied volatility for the considered macroeconomic variables. A two-country version of the Calvo …) inflation, but still allow high volatility in the nominal exchange rate to stabilize the real economy in face of shocks. The low …

odds with the theory. Cyclically, a monetary policy tightening increased the labor share and decreased real wages and labor … shock are unable to reproduce the responses of the labor share observed in the data. …

Conditional on a contractionary monetary policy shock, the labor share of value added is expected to decrease in the … projections and high dimensional fixed effects, we show that a one standard deviation contractionary monetary policy shock …

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 …