Dealing with Forward-looking Expectations and Policy Rules in Quantifying the Channels of Transmission of Monetary Policy |
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35 Figure A₁ ALTISSIMO B₁ Banca d'Italia Bank of Italy business cycle channels of transmission dashed December deviation from steady discretionary component dotted Econometric effects associated effects of monetary effects that transit endogenous variables equation euro area European Economic Review exact decomposition exogenous expectations formation flag variable FOCARELLI FORNARI forward-looking expectations GAMBACORTA impact multiplier individual channel Ireland isolated sub-block Italian j-th channel linear backward-looking LIPPI matches the overall matrix monetary policy reaction monetary policy rule monetary policy shock monetary policy transmission nominal money October output overall effect PANETTA parameters Percent deviation Periods after shock Phillips curve policy instrument policy interest rate policy reaction function policy variable probability density function quantified Rational Expectations RB ch RB channel real balance real money balances SCHIVARDI Section simulation simultaneity solution total effect transmission mechanism transmission of monetary Unconstr unconstrained unexplained residual various channels vector Γο