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Monetary Policy Regimes and the Term Structure of Interest Rates

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  • Mikhail Chernov

    (London Business School and CEPR)

  • Ruslan Bikbov

    (Barclays Capital)

Abstract

Counterfactual analysis uses the disentangled regimes in policy and shocks to understand their importance for the great moderation. The low-volatility regime of exogenous shocks during the last two decades plays an important role, while monetary policy contributes by trading off asymmetric responses of output and inflation under different regimes.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 334.

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Date of creation: 2009
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Handle: RePEc:red:sed009:334

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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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