Monetary Policy, Trend Inflation and the Great Moderation: An Alternative Interpretation
---- Acknowledgements -----
We are grateful to Mark Gertler, three anonymous referees, Jean Boivin, Kathryn Dominguez, Jordi Gali, Pierre- Olivier Gourinchas, David Romer, and Carl Walsh, as well as seminar participants at the Bank of Canada, UC Berkeley, UC Santa Cruz, and SED for comments. We thank Eric Swanson for sharing the series of monetary policy surprises. We thank Jean Boivin for sharing his code. We thank Viacheslav Sheremirov for excellent research assistance. All errors are ours. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.