Jonas E. Arias

TL;DR: In this article, monetary policy shocks in structural vector autoregressions are identified by imposing sign and zero restrictions on the systematic component of monetary policy while leaving the remaining equations in the system unrestricted.

TL;DR: In this article, the authors develop algorithms for exact finite sample inference in this class of time series models, commonly known as proxy-SVARs, making independent draws from the normal-generalized-normal family of conjugate posterior distributions over the structural parameterization of a proxy SVM.

TL;DR: In this paper, the authors show that without the additional restrictions, it is hard to support the claim that either optimism shocks are an important source of business cycle uctuations or deficit-financed tax cuts work best at improving output, and they provide an alternative and efficient algorithm that does not introduce any additional sign restriction, hence preserving the agnosticism of the theory.

TL;DR: This paper investigated the macroeconomic risks associated with undesirably low inflation using a medium-sized New Keynesian model and discussed policy options to mitigate these effects, including a downward shift in long run inflation expectations, a fall in nominal wage growth, and a favorable supply-side shock.