This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

In advanced economies, a century-long, near-stable ratio of credit to GDP gave way to rapid
financialization and surging leverage in the last forty years. This “financial hockey stick” …

Several academics and practitioners have pointed out that inflation follows a seemingly
exogenous statistical process, unrelated to the output gap, leading some to argue that the …

We study the effects of monetary policy shocks on—and their historical contribution to—
consumption and income inequality in the United States since 1980 as measured by the …

This paper surveys estimates of New Keynesian Phillips curve (NKPC) parameters that have
been obtained by fitting fully specified dynamic stochastic general equilibrium (DSGE) …

Using a Bayesian likelihood approach, we estimate a dynamic stochastic general
equilibrium model for the US economy using seven macroeconomic time series. The model …

Monetary policy and the private sector behaviour of the US economy are modelled as a time
varying structural vector autoregression, where the sources of time variation are both the …

Structural vector autoregressions (VARs) are widely used to trace out the effect of monetary
policy innovations on the economy. However, the sparse information sets typically used in …

We discuss the evolution in macroeconomic thought on the monetary policy transmission
mechanism and present related empirical evidence. The core channels of policy …

Macroeconomic practitioners frequently work with multivariate time series models such as
VARs, factor augmented VARs as well as time-varying parameter versions of these models …